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The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, Costs include interest. Assume that Eagle s assets are proportional

The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, Costs include interest. Assume that Eagles assets are proportional to its sales. Assume a growth rate of 35% in revenue, expenses, and assets in 2023. The tax rate will remain constant.
Income Statement
Sales $ 3,550
Costs 1,550
Pretax income $ 2,000
Taxes (at 30.0%)600
Net income $ 1,400
Balance Sheet, Year-End
2022202120222021
Net assets $ 5,600 $ 5,300 Debt $ 2,300 $ 2,200
Equity 3,3003,100
Total $ 5,600 $ 5,300 Total $ 5,600 $ 5,300
Assume that the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed at two-thirds.
What is the sustainable growth rate for 2023?

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