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The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 16,400 Current assets $ 11,200 Debt $ 15,700
The most recent financial statements for Schenkel Co. are shown here: |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 16,400 | Current assets | $ | 11,200 | Debt | $ | 15,700 | |||
Costs | 10,500 | Fixed assets | 27,000 | Equity | 22,500 | ||||||
Taxable income | $ | 5,900 | Total | $ | 38,200 | Total | $ | 38,200 | |||
Taxes (40%) | 2,360 | ||||||||||
Net income | $ | 3,540 | |||||||||
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? |
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