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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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