What is sustainable growth rate

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The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $ 16,300 Current assets $ 10,900 Debt $ 15,400 Costs 11,700 Fixed assets 26,250 Equity 21,750 Taxable income $ 4,600 Total $ 37,150 Total $ 37,150 Taxes (40%) 1,840 Net income $ 2,760 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 round your final answer to 2 decimal places. (e.g., 32.16)) Sustainable growth rate %

Reference no: EM131851605

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