The Growth Rate in Equity Without Any External Financing Is

question 4

True/False

The growth rate in equity without any external financing is determined by multiplying the payout ratio times the return on equity (ROE).

---

Definitions:

Hypothetical Claim

A statement or assertion based on assumptions or possibilities, not necessarily on facts or reality.

Deductive Argument

A type of logical argument in which the conclusion necessarily follows from the premises if they are true.

Valid

In logic, a term describing an argument where, if the premises are true, the conclusion must also be true.

Argument Form

The structure or pattern of reasoning used in constructing a logical argument.