Pizza Pie Maintains a Constant Debt-Equity Ratio of

question 73

Multiple Choice

Pizza Pie maintains a constant debt-equity ratio of .55.The firm had net income of $14,800 for the year and paid $12,000 in dividends.The firm has total assets of $248,000.What is the sustainable growth rate?

• A)3.38 percent
• B)2.27 percent
• C)1.78 percent
• D)3.62 percent
• E)4.97 percent

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Definitions:

Inequality

A situation where resources, opportunities, and rights are distributed unevenly among members of a society.

Resocialization

The process by which individuals undergo a transformation in their personality by discarding former behavioral patterns and accepting new ones, often in new social contexts.

Convergence

In communication and social psychology, convergence refers to the process by which individuals adjust their communicative behaviors to be more similar to their communication partners, promoting understanding and rapport.

Reconciles

The process of making one belief, fact, or action compatible with another, often involving the resolution of differences and restoration of harmony.