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In order to reduce production costs, Tryon Inc., an automobile manufacturer, decided to buy out a glass plant and begin manufacturing the glass for the windows of cars on its own. The corporate strategy adopted by the company is known as
Sustainable Growth Rate
The maximum rate at which a company can grow its earnings without needing to increase its equity or take on new debt.
Dividend Payout Ratio
The percentage of a company's earnings that is distributed to shareholders in the form of dividends.
Equity Multiplier
A financial ratio indicating how much of a company's assets are financed by shareholders' equity.
Dividend Payout Ratio
The fraction of net income a firm pays to its stockholders in dividends, expressed as a percentage of the company's total earnings.
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