Question
The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 14,500 Current assets $ 12,000 Debt $ 16,500
The most recent financial statements for Schenkel Co. are shown here:
| Income Statement | Balance Sheet | ||||||||||
| Sales | $ | 14,500 | Current assets | $ | 12,000 | Debt | $ | 16,500 | |||
| Costs | 8,400 | Fixed assets | 29,000 | Equity | 24,500 | ||||||
| Taxable income | $ | 6,100 | Total | $ | 41,000 | Total | $ | 41,000 | |||
| Taxes (40%) | 2,440 | ||||||||||
| Net income | $ | 3,660 | |||||||||
| Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external financing is possible. |
| What is the internal growth rate? |
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Finance And Economics Discussion Series The Evolution Of The Demand For Temporary Help Supply Employment In The United States
Authors: United States Federal Reserve Board, Marcello Estevao, Saul Lach
1st Edition
1288717881, 9781288717880
