ASSUMPTIONS 2006 2007 2008

Cash & Equivalents $200 $250 $300

Accounts Receivable 350 500 600

Inventory 400 550 500

Gross Fixed Assets 1,200 1,500 1,700

(Accumulated Depr) (200) (250) (300)

Total Assets $1,950 $2,550 $2,800

Accounts Payable $280 $300 $510

Notes Payable 380 350 260

Accrued Operating Exp. 150 200 290

Current Maturities 100 110 140

Long-Term Debt 270 400 650

Shareholders Equity 500 600 700

Total Liabilities & NW $1,680 $1,960 $2,550

Revenues (Sales) $2,500 $3,000 $3,700

Cost of Goods Sold 1,000 1,400 1,700

Operating Expenses 1,200 1,250 1,500

Depreciation 150 200 320

Interest 60 70 90

Taxes 25 30 30

Net Profit 65 50 60

Dividends 30 35 15

What is the sustainable growth rate for 2008?

Select one: a. 8.93% b. 23.33% c. 7.5% d. 6.43% e. 7%