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

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

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. Debt and equity are not. The company maintains a constant 32 percent dividend payout ratio. No external equity financing is possible.

Required:

What is the sustainable growth rate?

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