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The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 14,000 Current assets $ 10,500 Debt $ 15,000
The most recent financial statements for Schenkel Co. are shown here: |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 14,000 | Current assets | $ | 10,500 | Debt | $ | 15,000 | |||
Costs | 9,500 | Fixed assets | 25,250 | Equity | 20,750 | ||||||
Taxable income | $ | 4,500 | Total | $ | 35,750 | Total | $ | 35,750 | |||
Taxes (40%) | 1,800 | ||||||||||
Net income | $ | 2,700 | |||||||||
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 20 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.) |
Sustainable growth rate | % |
6.43 and 6.04 are wrong that i tried
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