The most recent financial statements for Shinoda Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 64,500 Current assets $ 29,500 Debt $ 45,700 Costs 44,530 Fixed assets 82,400 Equity 66,200 Taxable income $ 19,970 Total $ 111,900 Total $ 111,900 Tax (30%) 5,991 Net Income $ 13,979 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 46 percent dividend payout ratio. No external financing is possible. Required: What is the sustainable growth rate? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Sustainable growth rate %

The most recent financial statements for Shinoda Manufacturing Co. are shown below:  

Income Statement			Balance Sheet
Sales	$	64,500	Current assets	$	29,500	Debt	$	45,700
Costs		44,530	Fixed assets		82,400	Equity		66,200
Taxable income	$	19,970	Total	$	111,900	Total	$	111,900
Tax (30%)		5,991
Net Income	$	13,979

 

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 46 percent dividend payout ratio. No external financing is possible.

 

Required:

What is the sustainable growth rate? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

 

Sustainable growth rate

%