The most recent financial statements for Mandy Company are shown below: Income Statement...
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The most recent financial statements for Mandy Company are shown below:
Income Statement Balance Sheet Sales $ 97,800 Current assets $ 37,500 Debt $ 48,600 Costs 69,450 Fixed assets 96,500 Equity 85,400 Taxable income $ 28,350 Total $ 134,000 Total $ 134,000 Tax (22%) 6,237 Net Income $ 22,113
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
The most recent financial statements for Mandy Company are shown below:
| Income Statement | Balance Sheet | ||||
|---|---|---|---|---|---|
| Sales | $ 97,800 | Current assets | $ 37,500 | Debt | $ 48,600 |
| Costs | 69,450 | Fixed assets | 96,500 | Equity | 85,400 |
| Taxable income | $ 28,350 | Total | $ 134,000 | Total | $ 134,000 |
| Tax (22%) | 6,237 | ||||
| Net Income | $ 22,113 | ||||
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
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