The most recent financial statements for Live Co. are shown here:

Income Statement		Balance Sheet
Sales	$12,000	Current assets	$25,876	Debt	$25,502
Costs	7,200	Fixed assets	18,106	Equity	18,480
Taxable income	$4,800	Total	$43,982	Total	$43,982
Taxes (34%)	1,632
Net income	$3,168

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 20 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

	3.55 %
	6.11 %
	15.89 %
	15.39 %
	16.39 %