You’ve just done some analysis on a publicly traded company and some of your key findings are below. The company;

1. 1. Operates in a highly innovative and high growth industry which is expected to continue for the next 5 years before the industry matures
2. 2. The company is an industry leader with some of the best metrics relative to peers
3. 3. Has an ROE of 15%
4. 4. Operates in a world where GDP is approximately 5%
5. 5. Does not pay a dividend

Given these considerations, what is the most appropriate sustainable growth rate (terminal value growth rate) to use for this company?

A. 1%

B. 15%

C. 3%

D. 7%