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The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $ 16,500 Current assets $ 11,500 Debt $ 16,000

The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $ 16,500 Current assets $ 11,500 Debt $ 16,000 Costs 10,700 Fixed assets 27,750 Equity 23,250 Taxable income $ 5,800 Total $ 39,250 Total $ 39,250 Taxes (40%) 2,320 Net income $ 3,480 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?

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