4. The most recent financial statements for Smith Corp. are shown below.

Income Statement

Sales $16,200

Costs $10,400

Txbl Income $5,800

Taxes (40%) $2,320

Net Income $3,480

Balance Sheet

Current Assets $10,100 Debt $16,400

Fixed Assets $26,500 Equity $20,200

Total $36,600 Total $36,600

Assets and costs are proportional to sales while debt and equity are not. The company maintains a constant 30% dividend payout ratio. What is the internal growth rate?

5. For Smith Corp. (above), what is the sustainable growth rate?