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The most recent financial statements for Mandy Company are shown below: Income Statement Balance Sheet Sales $ 99,000 Current assets $ 38,500 Debt $ 49,800
The most recent financial statements for Mandy Company are shown below: Income Statement Balance Sheet Sales $ 99,000 Current assets $ 38,500 Debt $ 49,800 Costs 70,050 Fixed assets 97,100 Equity 85,800 Taxable income $ 28,950 Total $ 135,600 Total $ 135,600 Tax (24%) 6,948 Net Income $ 22,002 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16
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