The most recent financial statements for Shinoda Manufacturing Co. are shown below:
  

Income statement		Balance Sheet
Sales	63,400	Current Assets	24,000	Debt = 40,200
Costs	45,080	Fixed Assets	76,900	Equity = 60,700
Taxable Income	18,320	Total	100,900	Total = 100,900
Tax (35%)	6,412
Net Income	11,908

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 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               %

Answer rating: 100% (QA)

To calculate the sustainable growth rate we can use the DuPont ... View the full answer