The most recent financial statements for Live Co. are shown
here:
Income Statement
Balance Sheet
Sales
$11,000
Current assets
$23,719
Debt
$23,377
Costs
6,600
Fixed assets
16,598
Equity
16,940
Taxable income
$4,400
Total
$40,317
Total
$40,317
Taxes (34%)
1,496
Net income
$2,904
Assets and costs are proportional to sales. Debt and equity are
not. The company maintains a constant 26 percent dividend payout
ratio. No external equity financing is possible.
Required:
What is the sustainable growth rate? (Do not round...