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Your company's most recent income statement and balance sheet are given below: Income statement ($ million) Balance sheet ($ million) Sales 23 Current assets 14
Your company's most recent income statement and balance sheet are given below:
Income statement ($ million) | Balance sheet ($ million) | ||||||
Sales | 23 | Current assets | 14 | Debt | 21 | ||
Costs | 18.4 | Fixed assets | 56 | Equity | 49 | ||
Net income | 4.6 | Total assets | 70 | Total | 70 |
Sales, assets and costs are expected to grow by the same rate next year. The company is expected to pay NO dividends next year.
Part 1
What is the internal growth rate? What is the sustainable growth rate?
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