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The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $15,000 Current assets $32,345 Debt $31,878 Costs 9,000 Fixed
The most recent financial statements for Live Co. are shown here: |
Income Statement | Balance Sheet | ||||
Sales | $15,000 | Current assets | $32,345 | Debt | $31,878 |
Costs | 9,000 | Fixed assets | 22,633 | Equity | 23,100 |
Taxable income | $6,000 | Total | $54,978 | Total | $54,978 |
Taxes (34%) | 2,040 | ||||
Net income | $3,960 | ||||
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 sustainable growth rate? |
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