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.