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

Question

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

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

The most recent financial statements for Shinoda Manufacturing Co. are shown below. Income Statement Balance Sheet Sales $64,000 Current assets 27,000 Debt 43,200 Costs 79,900 Equity 63,700 44,780 Fixed assets Total $106,900 Total 106,900 Taxable income $19,220 Tax (35%) 6,727 $12,493 Net Income Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 41 percent dividend payout ratio. No external equity financing is possible. Required: What is the sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16). Sustainable growth rate 11

Explanation / Answer

asset utilization rate sales/total assets 0.5986904 profitability rate net income/sales 0.1952188 financial utilization rate total debt/total equity 0.678179 return on equity #VALUE! 0.0792626 7.926256 dividend rate dividend/net income 0.41 retention ratio 1-.41 0.59 sustainable growth rate retention ratio*return on equity 0.0467649 4.676491 percent

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