Assets and costs are proportional to sales. The company maintains a constant 18 percent dividend payout ratio and a constant debt-equity ratio.

What is the maximum increase in sales that can be sustained assuming no new equity is issued?

The most recent financial statements for Alexander Co. are shown here: $59,400 74,250 Income Statement Balance Sheet Current Long-term Sales $55,000 $86,130 assets debt Costs 35,200 Fixed assets 47,520 Equity Taxable $19,800 Total $133,650 Total income Taxes (24%) 4,752 Net income $15,048 $133,650 Assets and costs are proportional to sales. The company maintains a constant 18 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued