Montana Joe Corp. had net income of $14,900 last year, paid out $7,500 in dividends, and wants to maintain the same dividend payout ratio in the future.

At the beginning of last year, the company had a book value of debt of $38,000 and a book value of equity of $60,000.

Attempt 1/10 for 10 pts.

Part 1

What is the sustainable growth rate?