单选题 A firm"s financial statements reflect the following:

EBIT	$ 2000000
Sales	$16000000
Interest expense	$ 900000
Total assets	$12300000
Equity	$ 7000000
Effective tax rate	35%
Dividend payout rate	28%

Based on this information, what is the firm"s sustainable growth rate?

A、 7.35%.
B、 8.82%.
C、 9.10%.

【正确答案】 A

【答案解析】With this information, ROE = (0.1250×1.3008 -0.0732)×1.7571×0.65 =0.1021.
Sustainable growth = ROE ( 1 - dividend payout rate) =0.1021×0.72 =7.35%.