The most recent financial statements for Live Co. are shown here:

Income StatementBalance SheetSales$3,700Current assets$3,933Debt$7,863Costs2,442

Fixed assets9,628Equity5,698Taxable income$1,258Total$13,561

Total$13,561

Taxes (34%)428Net income$830

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 34 percent dividend payout ratio. No external equity financing is possible.

Required:What is the internal growth rate?(Do not round your intermediate calculations.)

rev: 09_17_2012

a. 10.64%

b. 2.13%

c. 4.31%

d. 4.11%

e. 4.21%