Question
The most recent financial statements for Shinoda Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 63,800 Current assets $ 26,000 Debt $
The most recent financial statements for Shinoda Manufacturing Co. are shown below:
| Income Statement | Balance Sheet | |||||||||
| Sales | $ | 63,800 | Current assets | $ | 26,000 | Debt | $ | 42,200 | ||
| Costs | 44,880 | Fixed assets | 78,900 | Equity | 62,700 | |||||
| Taxable income | $ | 18,920 | Total | $ | 104,900 | Total | $ | 104,900 | ||
| Tax (35%) | 6,622 | |||||||||
| Net Income | $ | 12,298 | ||||||||
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 39 percent dividend payout ratio. No external financing is possible. What is the internal growth rate?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Offshore Finance And State Power
Authors: Andrea Binder
1st Edition
0192870122, 978-0192870124
