EXLO Company Has Current Sales of $100,000 and Has Projected

Multiple Choice

EXLO Company has current sales of $100,000 and has projected annual sales growth of 5%, asset growth of 120%, profit margins of 3%, and its dividend policy is to have a dividend payout of 15% of net income per year.Assume there are no spontaneous liabilities.Ignoring income taxes, the sustainable growth rate (SGR) for EXLO is closest to:

A) 0.13%
B) 0.38%
C) 2.17%
D) 4.25%