The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $3,400 Current assets $3,614 Debt $7,226 Costs 2,244 Fixed assets 8,848 Equity 5,236 Taxable income $1,156 Total $12,462 Total $12,462 Taxes (35%) 405 Net income $751 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.

The most recent financial statements for Live Co. are shown here: Income Statement Sales $3,400 Balance Sheet $3,614 Debt $7,226 Current assets Fixed -assets Costs 2.244 8,848 Equity 5,236 $1,156 Total $12.462 Total $12,462 Taxable Income Taxes (35%) Net Income 405 $751 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 26 percent dividend payout ratlo. No external equity financing is possible. Required: What is the internal growth rate? (Do not round your Intermediate calculations.) Multiple Choice O 4.77% O O 11.88% O O 1.59% 4.57% O O O 4.67%