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The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $3,500 Current assets $3,720 Debt $7,438 Costs 2,310 Fixed
The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $3,500 Current assets $3,720 Debt $7,438 Costs 2,310 Fixed assets 9,108 Equity 5,390 Taxable income $1,190 Total $12,828 Total $12,828 Taxes (33%) 393 Net income $797 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 36 percent dividend payout ratio. No external equity financing is possible. Required: What is the internal growth rate? (Do not round your intermediate calculations.)
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