Assets and costs are proportional to sales what is the


The most recent financial statements for Shinoda Manufacturing Co. are shown below:

Income Statement Balance Sheet Sales $ 64,300 Current assets $ 28,500 Debt $ 44,700 Costs 44,630 Fixed assets 81,400 Equity 65,200 Taxable income $ 19,670 Total $ 109,900 Total $ 109,900 Tax (40%) 7,868 Net Income $ 11,802

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 44 percent dividend payout ratio. No external financing is possible.

What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal growth rate

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Financial Management: Assets and costs are proportional to sales what is the
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