The most recent financial statements for Live Co. are shown here:
Income Statement |
Sales |
$19670 |
Costs |
$11755 |
Taxable Income |
? |
Taxes (40%) |
? |
Net Income |
? |
Balance Sheet |
Current Asset |
$10093 |
Debt |
$12614 |
Fixed Asset |
$27826 |
Equity |
? |
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 24 percent dividend payout ratio. No external financing is possible.
What is the sustainable growth rate (in %)?