Which of the Following Statements Is Incorrect

Which of the following statements is incorrect?

A) Simple forecasting models cannot be used to predict a financial account.
B) Extrapolating trends from the past into the future must be done with caution.
C) Sustainable growth rate = Return on equity × Proportion of earnings retained
D) Sustainable growth is the expected growth rate of a business entity considering the entity's return on equity and its earnings retention.
E) The natural progression in most industries over time is profitability and growth in the early stages invites competition and imitation, which reduces growth and profitability in the industry.