The company maintains a constant 20 percent dividend payout


The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 17,800 Current assets $ 11,300 Debt $ 15,800 Costs 13,100 Fixed assets 27,250 Equity 22,750 Taxable income $ 4,700 Total $ 38,550 Total $ 38,550 Taxes (40%) 1,880 Net income $ 2,820 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 20 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %

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Financial Management: The company maintains a constant 20 percent dividend payout
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