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$28,400 21,200 2,700 $ 4,500 850 $ 3,650 1,400 $ 2,250 Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable

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$28,400 21,200 2,700 $ 4,500 850 $ 3,650 1,400 $ 2,250 Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Dividends $900 Balance Sheet End-of-Year Cash Accounts receivable Inventory Total current assets Net fixed assets Total assets $ 550 2,450 4,700 $ 7,700 16,900 $24,600 Accounts payable $ 2,700 Long-term debt 9,800 Common stock ($1 par value) 8,000 Retained earnings 4,100 Total Liab. & Equity $24,600 The firm does not want to incur any additional external financing. The dividend payout ratio is constant. What is the firm's maximum rate of growth? $ 2,700 Long-term debt 9,800 Common stock ($1 par value) 8,000 Retained earnings 4,100 Total Liab. & Equity $24,600 The firm does not want to incur any additional external financing. The dividend payout ratio is constant. What is the firm's maximum rate of growth? OA) 5.97 percent OB) 5.81 percent OC) 6.18 percent OD) 5.49 percent OE) 6.03 percent

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