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

Income Statement		Balance Sheet
Sales	$3,700	Current assets	$3,933	Debt	$7,863
Costs	2,442	Fixed assets	9,628	Equity	5,698
Taxable income	$1,258	Total	$13,561	Total	$13,561
Taxes (34%)	428
Net income	$830

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 20 percent dividend payout ratio. No external equity financing is possible.

Required:

What is the internal growth rate? (Do not round your intermediate calculations.)

Multiple Choice

1.24%

13.2%

5.15%

5.05%

5.25%