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The most recent financial statements for Mandy Company are shown here: Income Statement Sales Costs Taxable income Taxes (21%) Net income $ 20,300 13,900 $ 6,400 1,344 $5,056 Current assets Fixed assets Total Balance Sheet $11,980 Debt 32,400 Equity $ 44,380 Total $16,540 27,840 $44,380 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)

The most recent financial statements for Mandy Company are shown here: Income Statement Sales Costs Taxable income Taxes (21%) Net income $ 20,300 13,900 $ 6,400 1,344 $5,056 Current assets Fixed assets Total Balance Sheet $11,980 Debt 32,400 Equity $ 44,380 Total $16,540 27,840 $44,380 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 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 22BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...
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The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $ 11,980 Debt 32,400 Equity Sales Costs Taxable income Taxes (21%) Net income $ 20,300 13,900 $ 6,400 1,344 $ 5,056 Current assets Fixed assets Total $ 44,380 Total $ 16,540 27,840 $44,380 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)
Transcribed Image Text:The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $ 11,980 Debt 32,400 Equity Sales Costs Taxable income Taxes (21%) Net income $ 20,300 13,900 $ 6,400 1,344 $ 5,056 Current assets Fixed assets Total $ 44,380 Total $ 16,540 27,840 $44,380 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)
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