Question: The most recent financial statements for Conoly Manufacturing Co. are shown below: Assets and costs are proportional to sales. Debt and equity are not. The

The most recent for Conoly Manufacturing Co. are shown below:

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. No external financing is possible. What is the internal growth rate?

Income Statement Balance Sheet Sales Costs Taxable income S17,980 Tax (35%) Net Income 11687 $41,800 Current assets $18,000 Debt $28,600 23.820 Fixed assets 68,900 Equity 58,300 $86.900 Total $86.900 T 6,293

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