Assets and costs are proportional to sales debt and equity


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

Income Statement
Sales $15302
Costs $12161
Taxable Income ?
Taxes (40%) ?
Net Income ?
Balance Sheet
Current Asset $12198 Debt $16531
Fixed Asset $27378 Equity ?

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 25 percent dividend payout ratio. No external financing is possible.

What is the internal growth rate (in %)?

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Financial Management: Assets and costs are proportional to sales debt and equity
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