For the company in the previous problem, what is the sustainable growth rate? Data from Problem 6

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For the company in the previous problem, what is the sustainable growth rate?


Data from Problem 6 

The most recent financial statements for Barely Heroes Co. are shown here:

Income Statement Sales Costs Taxable income Taxes (34%) Net income $6,475 3,981 $2,494 848 $1,646 Current

Assets and costs are proportional to sales. Debt and equity are not. Barely Heroes maintains a constant 20 percent dividend payout ratio. No external equity financing is possible. What is the internal growth rate?

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Related Book For  book-img-for-question

Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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