A firm wishes to maintain a sustainable growth rate of 11% and a dividend payout ratio of 32%. The ratio of total assets to sales is constant at 1, and the profit margin is 8.1%.

What must the debt-to-equity ratio be if the firm wants its sustainable growth rate to be constant over time?

A) 1.55

B) 2.35

C) 0.80

D) 1.04

E) 0.46