The Company's total assets at year-end 2525 equal $4,700 and are financed by debt of $1,800and stockholder's equity of $2,900(130 shares outstanding).Their sales for year 2525,$13,160 , yielded a net profit margin (= net incomesales) of3.60%; the payout ratio (= dividendsnet income) always is 55%.The price-to-earnings ratio at year-end 2525 is 15.57.For the foreseeable future, the company intends to operate at their sustainable growth rate.If you assess the share's intrinsic value by using a 11.4% discount rate.

What is the company's sustainable growth rate?

a.6.59%b.7.35%c.8.32%d.8.89%e.9.11%

which statement is most accurate?

a.Intrinsic value is $53.13and the shareprice is $56.74, so the share is undervalued

b.Intrinsic value is $47.21and the shareprice is $65.27, so the share is overvalued

c.Intrinsic value is $62.43and the shareprice is $56.74, so the share is undervalued

d.Intrinsic value is $62.43and the shareprice is $65.27, so the share is undervalued

e.Intrinsic value is $53.13and the shareprice is $56.74, so the share is overvalued