Question: The most recent financial statements for BelloCo. are shown here: Income StatementBalance SheetSales$19,300Current assets$11,780Debt$15,940Costs13,200Fixed assets27,900Equity23,740Taxable income$6,100Total$39,680Total$39,680Taxes (21%)1,281Net income$4,819 Assets and costs are proportional to sales.

The most recent financial statements for BelloCo. are shown here:

Income StatementBalance SheetSales$19,300Current assets$11,780Debt$15,940Costs13,200Fixed assets27,900Equity23,740Taxable income$6,100Total$39,680Total$39,680Taxes (21%)1,281Net income$4,819

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio.

What is the sustainable growth rate?

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