Question: please answer the following question a,b and c Q48 A) Problem 3-20 Calculating Internal Growth [LO 3] The most recent financial statements for Shinoda Manufacturing
Q48 A) Problem 3-20 Calculating Internal Growth [LO 3] The most recent financial statements for Shinoda Manufacturing Co. are shown below: Income Statement Balance Shoot Sales 562.900 Current assets $21.500 Debt $37.700 Costs 45.330 Fixed assets 74.400 Equity 58.200 Taxable income $17.570 Total $9.900 Total $95.900 Tax (30%) Not Income 5.271 $ 12.299 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external financing is possible Required: What is the intemal growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places to g. 32.161.) Internal growth rate B) Problem 3-7 DuPont Identity [LO 3] if Phone, Inc., has an equity multiplier of 1.43, total asset turnover of 1.72, and a profit margin of 10 percent Required: What is the company's ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (0.9., 32.16).) ROE % c) Problem 3-13 Sustainable Growth [LO 3] Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 9.7% 58 .73 = $108,000 $ 44,500 Required: Based on the above information, calculate the sustainable growth rate for Northern Lights Co. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (eg, 32.16).) Sustainable growth rate
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