Question
The most recent financial statements for Schenkel Co. are shown here: Income StatementBalance Sheet Sales$16,200 Current assets$10,600 Debt$15,100 Costs12,400 Fixed assets25,500 Equity21,000 Taxable income$3,800Total$36,100 Total$36,100
The most recent financial statements for Schenkel Co. are shown here:
Income StatementBalance Sheet
Sales$16,200 Current assets$10,600 Debt$15,100
Costs12,400 Fixed assets25,500 Equity21,000
Taxable income$3,800Total$36,100 Total$36,100
Taxes (40%)1,520
Net income$2,280
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?(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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