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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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