The most recent financial statements for live co. Are shown here: income statement: sales $12,000, costs 7,200, taxable income $4,800, taxes(34%) 1,632, net income $3,168, current assets $ 25,876, fixed assets 18,106, total $43,982, debt $ 25,502, equity 18, 480, total $43,982. Assets and cost are proportional to sales. Debt and equity are not. The company maintains a constant 22 percent dividend payout ratio. No external equity financing is possible. What is sustainable growth rate?
The most recent financial statements for live co. Are shown here: income statement: sales $12,000, costs 7,200, taxable income $4,800, taxes(34%) 1,632, net income $3,168, current assets $ 25,876, fixed assets 18,106, total $43,982, debt $ 25,502, equity 18, 480, total $43,982. Assets and cost are proportional to sales. Debt and equity are not. The company maintains a constant 22 percent dividend payout ratio. No external equity financing is possible. What is sustainable growth rate?
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 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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The most recent financial statements for live co. Are shown here: income statement: sales $12,000, costs 7,200, taxable income $4,800, taxes(34%) 1,632, net income $3,168, current assets $ 25,876, fixed assets 18,106, total $43,982, debt $ 25,502, equity 18, 480, total $43,982. Assets and cost are proportional to sales. Debt and equity are not. The company maintains a constant 22 percent dividend payout ratio. No external equity financing is possible. What is sustainable growth rate?
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