Answer: 22%.

## Explanation The sustainable growth rate (SGR) is calculated using the formula: \[ \text{SGR} = \text{ROE} \times (1 - \text{Dividend Payout Ratio}) \] Where ROE (Return on Equity) can be calculated using the DuPont formula: \[ \text{ROE} = \text{Profit Margin} \times \text{Asset Turnover} \times \text{Equity Multiplier} \] **Step 1: Calculate ROE** \[ \text{ROE} = 8\% \times 0.8 \times 5.2 = 0.08 \times 0.8 \times 5.2 = 0.3328 \text{ or } 33.28\% \] **Step 2: Calculate SGR** \[ \text{SGR} = 33.28\% \times (1 - 0.35) = 33.28\% \times 0.65 = 21.632\% \] This is closest to **22%**, so the correct answer is **B**.

Author: LeetQuiz Editorial Team