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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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