Sal's Pizza Has a Dividend Payout Ratio of 10 Percent

Multiple Choice

Sal's Pizza has a dividend payout ratio of 10 percent.The firm does not want to issue additional equity shares but does want to maintain its current debt-equity ratio and its current dividend policy.The firm is profitable.Which one of the following defines the maximum rate at which this firm can grow?

A) internal growth rate × (1 - 0.10)
B) sustainable growth rate × (1 - 0.10)
C) internal growth rate
D) sustainable growth rate
E) zero percent