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

Income Statement		Balance Sheet
Sales	$3,000	Current assets	$3,189	Debt	$6,376
Costs	1,980	Fixed assets	7,807	Equity	4,620
Taxable income	$1,020	Total	$10,996	Total	$10,996
Taxes (34%)	347
Net income	$673

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 38 percent dividend payout ratio. No external equity financing is possible.

Required:

What is the internal growth rate? (Do not round your intermediate calculations.)

rev: 09_17_2012

	3.85%
	4.05%
	9.93%
	2.38%
	3.95%