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The most recent financial statements for Wise Co. are shown here: Income Statement Sales $38,400 Costs 29,200 Current assets Fixed assets Balance Sheet $22.400 Long-term
The most recent financial statements for Wise Co. are shown here: Income Statement Sales $38,400 Costs 29,200 Current assets Fixed assets Balance Sheet $22.400 Long-term debt 77,000 Equity $53,500 45,900 Total $99,400 Total $99,400 Taxable income Taxes (34%) $ 9,200 3,128 Net Income $ 6,072 Assets and costs are proportional to sales. The company maintains a constant 40 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained (sustainable growth rate)? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Maximum increase in sales
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