What is the sustainable growth rate

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Question

The most recent financial statements for Bello Co. are shown here:

Income Statement Balance Sheet Sales$19,300 Current assets$11,780 Debt$15,940 Costs 13,200 Fixed assets 27,900

Equity 23,740 Taxable income$6,100 Total$39,680 Total$39,680 Taxes (21%) 1,281 Net income$4,819

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio.

What is the sustainable growth rate?

Reference no: EM132378777

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