TB MC Qu$.04-35$ A profitable firm has a$...$

A profitable firm has a dividend payout ratio of $40$ percent. The firm does not want to issue additional equity nor increase its long$-$term debt. Which one of the following choices is the

maximum rate at which the firm can grow?

Multiple Choice

Internal growth rate $(1-\mathrm{.}40)$

Sustainable growth rate $(1-\mathrm{.}40)$

Internal growth rate

Sustainable growth rate

Zero percent