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The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $17,000 Current assets $36,657 Debt $36,128 Costs 10,200 Fixed
The most recent financial statements for Live Co. are shown here: |
Income Statement | Balance Sheet | ||||
Sales | $17,000 | Current assets | $36,657 | Debt | $36,128 |
Costs | 10,200 | Fixed assets | 25,651 | Equity | 26,180 |
Taxable income | $6,800 | Total | $62,308 | Total | $62,308 |
Taxes (34%) | 2,312 | ||||
Net income | $4,488 | ||||
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 28 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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