Question
The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 19,700 Current assets $ 11,860 Debt $ 16,180
The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 19,700 Current assets $ 11,860 Debt $ 16,180 Costs 13,440 Fixed assets 29,700 Equity 25,380 Taxable income $ 6,260 Total $ 41,560 Total $ 41,560 Taxes (25%) 1,565 Net income $ 4,695 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 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.)
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