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The most recent financial statements for Minnie's Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 93,000 Current assets $ 33,500 Debt $
The most recent financial statements for Minnie's Manufacturing Co. are shown below: |
Income Statement | Balance Sheet | |||||||
Sales | $ | 93,000 | Current assets | $ | 33,500 | Debt | $ | 43,800 |
Costs | 67,050 | Fixed assets | 94,100 | Equity | 83,800 | |||
Taxable income | $ | 25,950 | Total | $ | 127,600 | Total | $ | 127,600 |
Tax | 6,228 | |||||||
Net Income | $ | 19,722 | ||||||
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 enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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