IZAX, Co. had the following items on its balance sheet at the beginning of the year: Its

Question:

IZAX, Co. had the following items on its balance sheet at the beginning of the year:

Its net income this year is $20,000 and it pays dividends of $5,000. If its assets grew at its internal growth rate, what is its new D/Eratio?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...