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_____ Answers the Question of What Should Be Done in Specific

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_____ answers the question of what should be done in specific jobs.


Definitions:

Sustainable Growth Rate

The rate at which a company can grow its sales, earnings, and dividends without borrowing new funds.

Debt-equity Ratio

A gauge of a company's use of borrowing relative to the equity provided by its shareholders, determined by dividing liabilities by shareholders' equity.

Plowback Ratio

The proportion of earnings that a company reinvests in its business rather than distributing to shareholders.

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