he most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 16,500 Current assets $ 11,500 Debt $ 16,000 Costs 10,700 Fixed assets 27,750 Equity 23,250 Taxable income $ 5,800 Total $ 39,250 Total $ 39,250 Taxes (40%) 2,320 Net income $ 3,480 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth ratio?

I am having trouble figuring out the sustainable growth rate

I know the PAYOUT RATIO = 40%

PLOWBACK (b) 1-40% = 0.6

ROE 5,800/23250 =0.2494

The sustainable income I calculated is 0.01759 (ROE * b) / (1-(ROE*b)

This answer is not correct according to check my work application. Please help me.