Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 36 percent dividend payout ratio.

What is the sustainable growth rate?

The most recent financial statements for Bello Co. are shown here: Balance Sheet $21,563 Debt $21,252 15,089 Equity 15,400 Income Statement Current Sales $10,000 assets Fixed Costs 6,000 -assets Taxable $4,000 Total income Taxes (21%) 840 Net income $3,160 $36,652 Total $36,652 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 36 percent dividend payout ratio. What is the sustainable growth rate