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The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $14,000 Current assets $30,188 Debt $29,753 Costs 8,400 Fixed
The most recent financial statements for Live Co. are shown here: |
Income Statement | Balance Sheet | ||||
Sales | $14,000 | Current assets | $30,188 | Debt | $29,753 |
Costs | 8,400 | Fixed assets | 21,125 | Equity | 21,560 |
Taxable income | $5,600 | Total | $51,313 | Total | $51,313 |
Taxes (34%) | 1,904 | ||||
Net income | $3,696 | ||||
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? (Do not round your intermediate calculations.) |
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