Question
The most recent financial statements for LIVE Co. are shown here: Income Statements Sales$17, 500 Cost$11, 800 Taxable Income$ 5700 Taxes(40%)2,280 Net Income $3,420 Balance
The most recent financial statements for LIVE Co. are shown here:
Income Statements
Sales$17, 500
Cost$11, 800
Taxable Income$ 5700
Taxes(40%)2,280
Net Income $3,420
Balance Statement
Current assets$10,400
Fixed assets$28,750
Total$39,150
Debt$17,500
Equity $ 21,650
Total $39, 150
Assets and cost 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.
What is the sustainable growth rate? ( Do not round intermediate calculations and round your final answer to 2 decimal places.)
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