Question
The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 14,200 Current assets $ 11,100 Debt $ 15,600
| The most recent financial statements for Schenkel Co. are shown here: |
| Income Statement | Balance Sheet | ||||||||||
| Sales | $ | 14,200 | Current assets | $ | 11,100 | Debt | $ | 15,600 | |||
| Costs | 8,500 | Fixed assets | 26,750 | Equity | 22,250 | ||||||
| Taxable income | $ | 5,700 | Total | $ | 37,850 | Total | $ | 37,850 | |||
| Taxes (40%) | 2,280 | ||||||||||
| Net income | $ | 3,420 | |||||||||
| Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. No external financing is possible. |
| What is the internal growth rate? |
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Investment Management
Authors: Stephen Lofthouse
2nd Edition
047149237X, 9780471492375
