The most recent financial statements for Bello Co. are shown here:

Income Statement		Balance Sheet
Sales	$11,000	Current assets	$23,719	Debt	$23,377
Costs	6,600	Fixed assets	16,598	Equity	16,940
Taxable income	$4,400	Total	$40,317	Total	$40,317
Taxes (21%)	924
Net income	$3,476

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 24 percent dividend payout ratio.

What is the sustainable growth rate?

Multiple Choice

• 7.01%

• 18.48%

• 18.98%

• 5.18%

• 17.98 %