Question: The Company's financial statements for year 2525 show that year-end Total assets of $2,460 include Plant, property, & equipment (PP&E) of $2,100 . The assets are financed by Debt of $760 and Stockholders' equity of $1,700 . The annual Sales equal $11,800 , total costs equal $11,400 , Net income equals $400 , Dividends equal $230 , and New retained earnings equal $170 .

For 2526 the asset turnover (sales/total assets), net profit margin (=net income / sales), payout ratio (=dividends/net income) and price-to-earnings ratio (now 22.9) will be constant. The number of shares outstanding is 90. The firm seeks maximum growth by relying exclusively on retained earnings; external financing will be zero. What is the sales growth rate?