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Intro NiteLate Inc. had revenue of $136,000 last year, costs of $81,600 and depreciation of $20,400. The company paid 6.6% interest on its debt, and
Intro NiteLate Inc. had revenue of $136,000 last year, costs of $81,600 and depreciation of $20,400. The company paid 6.6% interest on its debt, and its average tax rate is 0.25. NiteLate paid out $13,600 in dividends, and wants to maintain the same dividend payout ratio in the future. At the beginning of the year, the company had a book value of debt of $31,000 and a book value of equity of $47,000. Over the course of the year, no debt or equity was newly issued or retired. | Attempt 2/10 for 10 pts. Part 2 What is the sustainable growth rate? 3+ decimals Submit
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