(Answered) The most recent financial statements for live co are shown

Finance

The most recent financial statements for Live Co. are shown here:

Income Statement			Balance Sheet
Sales	$13,250	Current assets	$10,400	Debt	$51,000
Costs	9,480	Fixed assets	28,750	Equity	21,650
Taxable income	$3,770	Total	$39,150	Total	$39,150
Taxes (34%)	1,508
Net income	$2,262

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible.

Required:

What is the internal growth rate?

4.11%
7.89%
1.76%
4.21%
4.31%

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