Assets and costs are proportional to sales debt and equity


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

Income Statement
Sales $19689
Costs $10586
Taxable Income ?
Taxes (40%) ?
Net Income ?
Balance Sheet
Current Asset $11041 Debt $16438
Fixed Asset $29973 Equity ?

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 19 percent dividend payout ratio. No external financing is possible.

What is the sustainable growth rate (in %)?

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Financial Management: Assets and costs are proportional to sales debt and equity
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