Narrow Falls Lumber has total assets of $913,600, total debt of $424,500, net sales of $848,600, and net income of $94,000. The tax rate is 21 percent and the dividend payout ratio is 30 percent. What is the firm's internal growth rate? Can the firm grow at 7 percent without raising external funds and why? (Hint: Need to compute ROA and the fraction reinvested. Choose closest answer if necessary).

Group of answer choices

A. 3.19 percent, yes because IGR < 7%

B. 3.19 percent, no because IGR < 7%

C. 11.47 percent, yes because IGR > 7%

D. 7.76 percent, yes because IGR > 7%

E. 7.76 percent, no because IGR > 7%