The most recent financial statements for Shinoda Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 64,600 Current assets $ 30,000 Debt $ 46,200 Costs 44,480 Fixed assets 82,900 Equity 66,700 Taxable income $ 20,120 Total $ 112,900 Total $ 112,900 Tax (35%) 7,042 Net Income $ 13,078 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 47 percent dividend payout ratio. No external financing is possible. Required: What is the internal growth rate? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Internal growth rate %

The most recent financial statements for Shinoda Manufacturing Co. are shown below:  

Income Statement			Balance Sheet
Sales	$	64,600	Current assets	$	30,000	Debt	$	46,200
Costs		44,480	Fixed assets		82,900	Equity		66,700
Taxable income	$	20,120	Total	$	112,900	Total	$	112,900
Tax (35%)		7,042
Net Income	$	13,078

 

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 47 percent dividend payout ratio. No external financing is possible.

 

Required:

What is the internal growth rate? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

 

Internal growth rate

%