Courtney Bike, Co. has a net profit margin of 7.8 percent, a debt ratio of 45 percent, total assets of $2,112,370, and sales of $4,276,990. If the company has a dividend payout ratio of 60 percent, what is the company's sustainable growth rate? (Do not round intermediate calculations. Round final answer to one decimal place.)

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The sustainable growth rate (SGR) formula is: SGR = ROE * (1 - dividend payout ratio), where ROE (Return on Equity) can be calculated from net profit margin, total assets, and total equity (which can be derived from the debt ratio). First, calculate the net income: Net Income = Net Profit Margin * Sales = 0.078 * $4,276,990 = $333,605.22. Then, calculate the equity: Equity = Total Assets * (1 - Debt Ratio) = $2,112,370 * (1 - 0.45) = $1,161,803.5. Now, calculate ROE: ROE = Net Income / Equity = $333,605.22 / $1,161,803.5 = 0.287 or 28.7%. Finally, calculate SGR: SGR = ROE * (1 - Dividend Payout Ratio) = 0.287 * (1 - 0.60) = 0.287 * 0.40 = 0.1148 or 11.5%.