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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)) |
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