Question
The most recent financial statements for Burnaby Co. are shown here: Statement of Comprehensive Income Statement of Financial Position Sales $ 13,250 Current assets $
The most recent financial statements for Burnaby Co. are shown here: Statement of Comprehensive Income Statement of Financial Position Sales $ 13,250 Current assets $ 10,400 Debt $ 17,500 Costs 9,480 Fixed assets 28,750 Equity 21,650 Taxable income $ 3,770 Total $ 39,150 Total $ 39,150 Taxes (40%) 1,508 Net income $ 2,262 Assets and costs are proportional to sales. Debt and equity are not. Burnaby maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
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