Rondolo, Inc. $2015$ Income Statement $($$ in millions$)$

Net Sales $$12,800$

Less: Cost of Goods Sold $10,400$

Less: Depreciation $680$

Earnings Before Interest and Taxes $1,720$

Less: Interest Paid $280$

Taxable Income $$1,440$

Less: Taxes $500$

Net Income $$940$

Dividends $$423$

Additions to retained earnings $$517$

Rondolo, Inc. $2015$ Balance Sheet $($$ in millions$)$

Cash $$520$ Accounts payable $$1,810$

Accounts rec $1,080$ Long$-$term debt $3,600$

Inventory $3,120$ Common stock $5,000$

Total $$4,720$ Retained earnings $1,790$

Net fixed assets $7,480$

Total assets $$12,200$ Total liabilities & equity $$12,200$

Rondolo, Inc. does not want to incur any additional external financing. The dividend payout ratio is constant. What is their maximum rate of growth?

Question $41$ options:

$4\mathrm{.}24\%$

$4\mathrm{.}43\%$

$4\mathrm{.}46\%$

$4\mathrm{.}53\%$

$4\mathrm{.}61\%$