Question
The most recent financial statements for Minnie's Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 90,000 Current assets $ 31,000 Debt $
The most recent financial statements for Minnie's Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 90,000 Current assets $ 31,000 Debt $ 40,800 Costs 65,550 Fixed assets 92,600 Equity 82,800 Taxable income $ 24,450 Total $ 123,600 Total $ 123,600 Tax 5,868 Net Income $ 18,582 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 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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