Question
The most recent financial statements for Live Co. are shown here: Income Statement Sales $17,711 Costs $12,032 Taxable Income ? Taxes (40%) ? Net Income
The most recent financial statements for Live Co. are shown here:
| Income Statement | |
| Sales | $17,711 |
| Costs | $12,032 |
| Taxable Income | ? |
| Taxes (40%) | ? |
| Net Income | ? |
| Balance Sheet | |||
| Current Asset | $11,014 | Debt | $13,067 |
| Fixed Asset | $28,811 | Equity | ? |
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 16 percent dividend payout ratio. No external financing is possible.
What is the sustainable growth rate (in %)?
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Cost Accounting Foundations And Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
7th Edition
0324560559, 978-0324560558
