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The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $10,000 Current assets $21,563 Debt $21,252 Costs 6,000 Fixed
The most recent financial statements for Live Co. are shown here: |
Income Statement | Balance Sheet | ||||
Sales | $10,000 | Current assets | $21,563 | Debt | $21,252 |
Costs | 6,000 | Fixed assets | 15,089 | Equity | 15,400 |
Taxable income | $4,000 | Total | $36,652 | Total | $36,652 |
Taxes (33%) | 1,320 | ||||
Net income | $2,680 | ||||
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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