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The most recent financial statements for Bello Co. are shown here:   Income Statement   Balance Sheet     Sales $ 19,800   Current assets $ 11,880   Debt $ 16,240     Costs   13,500   Fixed assets   30,150   Equity   25,790                             Taxable income $ 6,300       Total $ 42,030       Total $ 42,030                             Taxes (24%)   1,512                                               Net income $ 4,788                                               Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio.    What is the sustainable growth rate? (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 Bello Co. are shown here:   Income Statement   Balance Sheet     Sales $ 19,800   Current assets $ 11,880   Debt $ 16,240     Costs   13,500   Fixed assets   30,150   Equity   25,790                             Taxable income $ 6,300       Total $ 42,030       Total $ 42,030                             Taxes (24%)   1,512                                               Net income $ 4,788                                               Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio.    What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 17BEA: Ernst Companys balance sheet shows total liabilities of 32,500,000, total stockholders equity of...
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The most recent financial statements for Bello Co. are shown here:

 

Income Statement   Balance Sheet  
  Sales $ 19,800   Current assets $ 11,880   Debt $ 16,240  
  Costs   13,500   Fixed assets   30,150   Equity   25,790  
                       
  Taxable income $ 6,300       Total $ 42,030       Total $ 42,030  
                       
  Taxes (24%)   1,512                  
                       
    Net income $ 4,788                  
                       
 

 

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. 

 

What is the sustainable growth rate? (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 Bello Co. are shown here: Income Statement Balance Sheet Current Sales $19,800 $ 11,880 Debt $ 16,240 assets Costs 13,500 Fixed assets 30,150 Equity 25,790 Таxable $ 6,300 Total $42,030 Total $42,030 income Тахes (24%) 1,512 Net income $ 4,788 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %
Transcribed Image Text:The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Current Sales $19,800 $ 11,880 Debt $ 16,240 assets Costs 13,500 Fixed assets 30,150 Equity 25,790 Таxable $ 6,300 Total $42,030 Total $42,030 income Тахes (24%) 1,512 Net income $ 4,788 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %
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