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The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 18,100 Current assets $ 12,200 Debt $ 16,700
The most recent financial statements for Schenkel Co. are shown here: |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 18,100 | Current assets | $ | 12,200 | Debt | $ | 16,700 | |||
Costs | 13,900 | Fixed assets | 29,500 | Equity | 25,000 | ||||||
Taxable income | $ | 4,200 | Total | $ | 41,700 | Total | $ | 41,700 | |||
Taxes (40%) | 1,680 | ||||||||||
Net income | $ | 2,520 | |||||||||
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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