Assume that the following ratios are constant.

Total asset turnover	1.45
Profit margin	7.5%
Equity multiplier	1.3
Payout ratio	65%

Required:

What is the maximum growth rate for this firm if it keeps the debt-equity ratio constant and avoids issuing any new shares of stock? (Do not round your intermediate calculations.)

• 5.21%

• 5.41%

• -1.13%

• -2.08%