Pizza Pie Maintains a Constant Debt-Equity Ratio of

Multiple Choice

Pizza Pie maintains a constant debt-equity ratio of .55.The firm had net income of $14,800 for the year and paid $12,000 in dividends.The firm has total assets of $248,000.What is the sustainable growth rate?

A) 3.38 percent
B) 2.27 percent
C) 1.78 percent
D) 3.62 percent
E) 4.97 percent