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Ksivusya [100]
2 years ago
11

The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 18,900 Current assets

$ 11,700 Debt $ 15,700 Costs 12,800 Fixed assets 26,500 Equity 22,500 Taxable income $ 6,100 Total $ 38,200 Total $ 38,200 Taxes (21%) 1,281 Net income $ 4,819 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? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)
Business
1 answer:
allsm [11]2 years ago
3 0

Answer:

9.69%

Explanation:

Calculate for the internal growth rate

First step is to calculate the ROA

ROA = $4,819/$38,200

ROA=.1262*100

ROA= 12.62%

Second step is to calculate the plowback ratio b

The plowback ratio, b= 1 – .30

b= .70

Now let calculate the Internal growth rate using this formula

Internal growth rate=(ROA × b)/[1 – (ROA × b)]

Let plug in the formula

Internal growth rate=[.1262(.70)]/[1 – .1262(.70)]

Internal growth rate=.0969*100

Internal growth rate= 9.69%

Therefore the internal growth rate will be 9.69%

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The rate of return on the common stock of Flowers by Flo is expected to be 14 percent in a boom economy, 8 percent in a normal e
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First we shall calculate the epected weighted average return of the stock.

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Making formal statements, holding rites and rituals, utilizing employee training and coaching, demonstrating how a leader reacts
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Dave Bowers collects U.S. gold coins. He has a collection of 41 coins. Some are​ $10 coins, and the rest are​ $20 coins. If the
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Answer:

1. Dave has 23 ($10 coins) and 18 ($20) coins.

2. Dave has 18 ($10 coins) and 16 ($20) coins.

Explanation:

1.

Let x be the number of $10 coins.

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The equation for the sum of money can be written as:

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