Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $ 17,500 Current assets $ 10,400 Debt $ 17,500

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

Income Statement Balance Sheet
Sales $ 17,500 Current assets $ 10,400 Debt $ 17,500
Costs 11,800 Fixed assets 28,750 Equity 21,650
Taxable income $ 5,700 Total $ 39,150 Total $ 39,150
Taxes (40%) 2,280
Net income $ 3,420

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible.

What is the sustainable growth rate? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

e. What are notable achievements of the group?

Answered: 1 week ago