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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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