answer for problem 7

calculating Internal Growth [LO3] The most recent financial statements for Live Co. are shown here: Income Statement Sales $13,250 Costs 9,480 Taxable income $ 3,770 Taxes (40%) 1,508 Net income $2,262 Current assets Fixed assets Total Balance Sheet $10,400 Debt 28,750 Equity $39,150 Total $17,500 21,650 $39,150 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. What is the internal growth rate? 7. Calculating Sustainable Growth (L03] For the company in the previous problem, what is the sustainable growth rate