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The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 16,800 Current assets $ 12,400 Debt $ 16,900
The most recent financial statements for Schenkel Co. are shown here: |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 16,800 | Current assets | $ | 12,400 | Debt | $ | 16,900 | |||
Costs | 10,600 | Fixed assets | 30,000 | Equity | 25,500 | ||||||
Taxable income | $ | 6,200 | Total | $ | 42,400 | Total | $ | 42,400 | |||
Taxes (40%) | 2,480 | ||||||||||
Net income | $ | 3,720 | |||||||||
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.) |
Sustainable growth rate |
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