Use the information below from Paxton Industries annual financial statements to calculate the actual and sustainable growth rate for each year from 2015 2019.

B. Describe the companys growth challenge, if any, over this period.

C. Comment on the observed change in the companys payout policy over the period in question. Does it make sense in the context of the companys growth challenge? Explain.

D. What are some recommendations you might provide management that will help to meet this growth challenge?

Paxton Industries ($ in thousands)

2013 2014 2015 2016 2017 2018 2019

Equity - 377.49 464.35 507.78 471.87 603.06 680.72

Total assets - 520.00 706.78 724.04 759.90 1071.07 1423.35

Sales 597.30 585.03 861.95 950.41 1139.48 1360.58 1721.78

Net income - 51.92 31.57 46.18 53.81 30.91 38.26

Dividends - 0.00 0.00 1.20 1.88 2.56 3.04