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The most recent financial statements for Shinoda Manufacturing Co. are shown below: Income Statement Balance Sheet $75,300 Current assets $ 27,000 Debt 37,200 79,100 Sales
The most recent financial statements for Shinoda Manufacturing Co. are shown below: Income Statement Balance Sheet $75,300 Current assets $ 27,000 Debt 37,200 79,100 Sales Costs 55,380 Fixed assets 89,300 Equity Taxable income $ 19,920 Total $ 116,300 Total $116,300 6,972 Tax (35%) Net Income $ 12,948 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. Required: What is the internal growth rate? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) 1% Internal growth rate
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