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The most recent financial statements for Live Co. are shown here: Sales 13,000 Current Assets 28,032 Debt 27,628 Costs 7,800 Fixed Assets 19,616 Equity 20,020
The most recent financial statements for Live Co. are shown here:
Sales | 13,000 | Current Assets | 28,032 | Debt | 27,628 |
Costs | 7,800 | Fixed Assets | 19,616 | Equity | 20,020 |
Taxable Income | 5,200 | ||||
Taxes (35%) | 1,820 | ||||
Net Income | 3,380 | Total | 47,648 | Total | 47,648 |
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 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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