Dividend payout ratio-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 $11,000 Current assets $23,719 Debt $23,377 Costs 6,600 Fixed assets 16,598 Equity 16,940 Taxable income $4,400 Total $40,317 Total $40,317 Taxes (34%) 1,496 Net income $2,904 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 32 percent dividend payout ratio. No external equity financing is possible. Required: What is the sustainable growth rate? (Do not round your intermediate calculations.) rev: 09_17_2012 12.7 % 13.2 % 5.8 % 5.15 % 13.7 %

Reference no: EM131070526

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