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A firm has net income of $250,000 on sales of $4,250,000. Its assets total $2,500,000; the equity at the beginning of the year was $1,900,000

A firm has net income of $250,000 on sales of $4,250,000. Its assets total $2,500,000; the equity at the beginning of the year was $1,900,000 and dividends paid were $100,000. What is the sustainable growth rate?

A)6.89%

B)9.20%

C)5.75%

D)7.90%

E)none of the above

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