
Essentials Of Investments
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ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The most recent financial statements for live co. Are shown here: income statement: sales $3,000, cost 1,980, Taxable income $1,020, Taxes (34%) 347, net income $673, current assets $3,189, fixed assets 7,807, total $10, 996, debt $6,376, equity 4,620, total $10,996. Assets and cost are proportional to sales. Debt and equity are not. The company maintains a constant 20 percent dividend payout ratio. No external equity financing is possible. What is the internal growth rate?
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