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Problem $4-6$ Calculating Internal Growth $[$LO$3]$

The most recent financial statements for Marcus Company are shown here:

Income Statement Balance Sheet

Sales $ $20,100$ Current assets $ $11,940$ Debt $ $16,420$

Costs $13,800$ Fixed assets $31,500$ Equity $27,020$

Taxable income $ $6,300$ Total $ $43,440$ Total $ $43,440$

Taxes $(21\%)1,323$

Net income $ $4,977$

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant $45$ percent dividend payout ratio. What is the internal growth rate?

Note: Do not round intermediate calculations and enter your answer as a percent rounded $2$ decimal places, e$.$g$.,32\mathrm{.}16.$