The most recent financial statements for Health Inc., are shown below: ...
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Accounting
| The most recent financial statements for Health Inc., are shown below: |
| Income Statement: | Balance Sheet: | ||||
| Sales | $19,000 | Current assets | $40,970 | Debt | $40,379 |
| Costs | 11,400 | Fixed assets | 28,669 | Equity | 29,260 |
| Taxable income | $7,600 | Total | $69,639 | Total | $69,639 |
| Taxes (34%) | 2,584 | ||||
| Net income | $5,016 | ||||
| Assets and costs are proportional to sales, but debt and equity are not. Health Inc. maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. |
| What is the sustainable growth rate? (Do not round your intermediate calculations.) |
A. 5.42 %
B. 5.31 %
C. 14.14 %
D. 13.14 %
E. 13.64 %
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