What is the sustainable growth rate

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The most recent financial statements for Shinoda Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 63,000 Current assets $ 22,000 Debt $ 38,200 Costs 45,280 Fixed assets 74,900 Equity 58,700 Taxable income $ 17,720 Total $ 96,900 Total $ 96,900 Tax (35%) 6,202 Net Income $ 11,518 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 31 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 %

Reference no: EM132072225

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