Assume the firm has a constant dividend payout ratio and a constant debt-equity ratio. What is the sustainable growth rate the firm can achieve while maintaining its capital structure? Currently, the firms sales =$4,700, net income is $420, total assets=7890, dividends=125, A/P =790, LTD= 3130, and common stock=2780, and retained earnings =1190.

A. 1.61 percent

B. 2.65 percent

C. 8.03 percent

D.3.88 percent