Condensed Year 1 financial statement for Trevor Corporation are presented below. Trevor consistently pays dividends equal to 25% of net income. Sales are proportionate to costs and assets but not to debt and equity. What is Trevors sustainable growth rate based on the information presented below?

Income Statement Yr 1			Balance Sheet (end of yr 1)
Sales	10000		Current Assets		Total Debt	10000
Costs	4000		Fixed Assets		Total Equity
EBIT	6000		Total Assets	25000	Total D&E
Interest Expense	1000
Taxable income	5000
Income Tax (20%)	1000
Net Income	4000

A. 26.7%

b. 20.0%

c. 16.0%

D. 25.0%

E. 13.6%