You have decided that you will not invest in the stock of any company that does not have a sustainable growth rate (SGR) of at least 10%. Shares of AXION Corp are currently selling for $ 25.00 each. According to the Financial Statement this firm has ROE of 13.1% and a dividend payout ratio of 30%. Based on your calculation, will you buy the shares of Axion Corp or not?

a.Yes

b.Buy only if the Price falls below $20 per share

c.No

d.May be