Question
The most recent financial statements for Shinoda Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 64,100 Current assets $ 27,500 Debt $
The most recent financial statements for Shinoda Manufacturing Co. are shown below:
Income Statement | Balance Sheet | |||||||
Sales | $ | 64,100 | Current assets | $ | 27,500 | Debt | $ | 43,700 |
Costs | 44,730 | Fixed assets | 80,400 | Equity | 64,200 | |||
Taxable income | $ | 19,370 | Total | $ | 107,900 | Total | $ | 107,900 |
Tax (30%) | 5,811 | |||||||
Net Income | $ | 13,559 | ||||||
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 42 percent dividend payout ratio. No external equity financing is possible. What is the ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) ROE % What is the sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %
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