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Problem 4-7 Calculating Sustainable Growth [LO3] The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $19,800 Current $
Problem 4-7 Calculating Sustainable Growth [LO3] The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $19,800 Current $ 11,880 Debt $ 16,240 assets Costs 13,500 Fixed assets 30,150 Equity 25,790 Taxable income $ 6,300 Total $42,030 Total $42,030 Taxes (24%) 1,512 Net income $ 4,788 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %
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