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The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $11,000 Current assets $23,719 Debt $23,377 Costs 6,600 Fixed
The most recent financial statements for Live Co. are shown here: |
Income Statement | Balance Sheet | ||||
Sales | $11,000 | Current assets | $23,719 | Debt | $23,377 |
Costs | 6,600 | Fixed assets | 16,598 | Equity | 16,940 |
Taxable income | $4,400 | Total | $40,317 | Total | $40,317 |
Taxes (34%) | 1,496 | ||||
Net income | $2,904 | ||||
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 26 percent dividend payout ratio. No external equity financing is possible. |
Required: |
What is the sustainable growth rate? (Do not round your intermediate calculations.) |
rev: 09_17_2012
Multiple Choice
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14.53 %
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5.63 %
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15.03 %
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4.67 %
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14.03 %
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