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The most recent financial statements for Minnie's Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 89,400 Current assets $ 30,500 Debt $
The most recent financial statements for Minnie's Manufacturing Co. are shown below: |
Income Statement | Balance Sheet | |||||||
Sales | $ | 89,400 | Current assets | $ | 30,500 | Debt | $ | 40,200 |
Costs | 65,250 | Fixed assets | 92,300 | Equity | 82,600 | |||
Taxable income | $ | 24,150 | Total | $ | 122,800 | Total | $ | 122,800 |
Tax | 5,555 | |||||||
Net Income | $ | 18,595 | ||||||
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? (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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