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The most recent financial statements for LIVE Co. are shown here:
Income Statements
Sales $17, 500
Cost $11, 800
Taxable Income $ 5700
Taxes(40%) 2,280
Net Income $3,420
Balance Statement
Current assets $10,400
Fixed assets $28,750
Total $39,150
Debt $17,500
Equity $ 21,650
Total $39, 150
Assets and cost 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.
What is the internal growth rate? ( Do not round intermediate calculations and round your final answer to 2 decimal places.)
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