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

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. What is the internal growth rate?

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Income Statement Balance Sheet Sales $16,400 Current assets $11,200 Debt $13,600 Costs 11,200 Fixed assets 24,300 Equity 21,900 Taxable $ 5,200 Total $35,500 Total $35,500 income Taxes (21%) 1,092 Net income $ 4,108