The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $17,000 Current assets $36,657 Debt $36,128 Costs 10,200 Fixed assets 25,651 Equity 26,180 Taxable income $6,800 Total $62,308 Total $62,308 Taxes (33%) 2,244 Net income $4,556 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 38 percent dividend payout ratio. No external equity financing is possible.

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

Multiple Choice

7.08 %

12.59 %

11.59 %

12.09 %

4.75 %