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The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 14,300 Current assets $ 11,400 Debt $ 15,900

The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 14,300 Current assets $ 11,400 Debt $ 15,900 Costs 10,300 Fixed assets 27,500 Equity 23,000 Taxable income $ 4,000 Total $ 38,900 Total $ 38,900 Taxes (40%) 1,600 Net income $ 2,400 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 25 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate?

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