Question
The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $ 18,000 Current assets $ 11,900 Debt $ 16,400
The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $ 18,000 Current assets $ 11,900 Debt $ 16,400 Costs 12,100 Fixed assets 28,750 Equity 24,250 Taxable income $ 5,900 Total $ 40,650 Total $ 40,650 Taxes (40%) 2,360 Net income $ 3,540 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? (Do not round intermediate calculations and round your final answer to 2 decimal places.
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