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Business, 19.02.2021 17:00 alexis3744

The most recent financial statements for Live Co. are shown here: Income StatementBalance Sheet
Sales$4,800 Current assets$5,102 Debt$10,201
Costs
3,168

Fixed assets12,491 Equity7,392
Taxable income$1,632 Total
$17,593

Total
$17,593

Taxes (34%)555
Net income
$1,077

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.
Required:
What is the internal growth rate?
A. 4.48%
B. 4.58%
C. 4.38%
D. 11.36%
E. 1.87%

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Answers: 2

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The most recent financial statements for Live Co. are shown here: Income StatementBalance Sheet
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