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Brosky Film Productions has the following financial information: sales - $1,800,000 debt - $200,000 expected net income - $80,000 shares outstanding - 150,000 total assets

Brosky Film Productions has the following financial information:

sales - $1,800,000

debt - $200,000

expected net income - $80,000

shares outstanding - 150,000

total assets - $800,000

payout ratio - 70%

If the firm is in the mature stages of its corporate life cycle, what is the firm's sustainable or constant growth rate in earnings, dividends, and capital gains?

A) 2.25%

B) 3.00%

C) 4.00%

D) 9.33%

E) 13.33%

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