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What is the maximum dividend payout ratio consistent with not requiring external funds for a firm with an ROE of 15%, a debt-equity ratio of

What is the maximum dividend payout ratio consistent with not requiring external funds for a firm with an ROE of 15%, a debt-equity ratio of 50%, and an annual sales growth objective of 9%?

A. Approximately 1%

B. Approximately 10%

C. Approximately 12%

D. Approximately 20%

How is the answer B?

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