The Expo Company has the most recent financial statements as follows. The current liabilities are...
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Finance
The Expo Company has the most recent financial statements as follows. The current liabilities are consisted solely of accounts payables. The company maintains a constant dividend payout ratio. The projected sales growth over the next year is 10%. If the Expo Company does not want to incur any additional external financing, what is the maximum rate of growth the firm could achieve?
Income Statement
Balance Sheet
Assets
Liabilities and Owners' Equity
Sales
4,200.0
Current Assets
900.0
Current Liabilities
500.0
Costs
3,800.0
Net fixed assets
2,100.0
Long-term debt
1,800.0
Taxable Income
400.0
Owners' equity
700.0
Taxes (34%)
136.0
Total Assets
3,000.0
Total liabilities and owners' equity
3,000.0
Net Income
264.0
Dividends
132.0
Addition to retained earnings
132.0
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