What is the sustainable growth rate

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Reference no: EM132484077

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

Income Statement

Sales$19,000

Costs 12,880

Taxable income$6,120 

Taxes (21%) 1,285 

Net income$4,835 

Balance Sheet

Current assets$11,720 Debt$15,760 

Fixed assets 26,550 Equity 22,510 

Total$38,270 Total$38,270

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. 

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.)

Reference no: EM132484077

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