Neal's Nails has Total Assets of $150,000, Shareholders Equity of $125,000, Net Income of $16,500, and dividends of $4,950. What is the firms Sustainable Growth Rate? If the firm grows at this rate and uses debt as external financing will its debt-to-equity ratio increase, decrease, or remain the same? (Hint: Need to compute the payout ratio, fraction reinvested, and ROE).

A) 10.18 percent; Increase B) 10.18 percent; Decrease C) 10.18 percent; Constant D) 4.12 percent; Increase E) 4.12 percent; Decrease