The most recent financial statements for Live Co. are shown here:
| Income Statement |
Balance Sheet |
| Sales |
$3,500 |
Current assets |
$3,720 |
Debt |
$7,438 |
| Costs |
2,310
|
Fixed assets |
9,108 |
Equity |
5,390 |
| Taxable income |
$1,190 |
Total |
$12,828
|
Total |
$12,828
|
| Taxes (33%) |
393 |
|
|
|
|
| Net income |
$797
|
|
|
|
|
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 36 percent dividend payout ratio. No external equity financing is possible.
Required:
What is the internal growth rate? (Do not round your intermediate calculations.)