2. The most recent financial statements for Throwing Copper Co. are shown here: Income Statement Balance Sheet Sales $42,000.00 Current Assets $25,000.00 Long-term debt $51,000.00 Costs $28,500.00 Net Fixed Assets $82,000.00 Equity $56,000.00 Taxable Income $13,500.00 Taxes (34%) $4,590.00 Net Income $8,910.00 Total Assets $107,000.00 Total $107,000.00 Assets and costs are proportional to sales. The company maintains a constant 30 percent dividend payout ratio a ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued? (sustainable growth rate)

Sales	$42,000.00		Current Assets			$25,000.00		Long-term debt	$51,000.00
Costs	$28,500.00		Net Fixed Assets			$82,000.00		Equity	$56,000.00
Taxable Income	$13,500.00
Taxes (34%)	$4,590.00

Net Income

$8,910.00

Total Assets

$107,000.00

Total

$107,000.00