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The most recent financial statements for Health Inc., are shown below: Income Statement: Balance Sheet: Sales $19,000 Current assets $40,970 Debt $40,379 Costs 11,400 Fixed

The most recent financial statements for Health Inc., are shown below:

Income Statement: Balance Sheet:
Sales $19,000 Current assets $40,970 Debt $40,379
Costs

11,400

Fixed assets 28,669 Equity 29,260
Taxable income $7,600 Total

$69,639

Total

$69,639

Taxes (34%) 2,584
Net income

$5,016

Assets and costs are proportional to sales, but debt and equity are not.

Health Inc. maintains a constant 30 percent dividend payout ratio.

No external equity financing is possible.

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

A. 5.42 %

B. 5.31 %

C. 14.14 %

D. 13.14 %

E. 13.64 %

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