All of the Following Are Ways in Which a Firm

question 83

Multiple Choice

All of the following are ways in which a firm can increase its growth rate of equity earnings without any external financing except

• A) Decreasing its dividend payments
• B) Increasing its retention ratio
• C) Increasing its return on equity (ROE)
• D) Increasing its return on assets (ROA)
• E) All of the above will increase the firm's growth rate without external financing

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Definitions:

Insurance Account

An account used to track payments for insurance policies and the portion of the premium that has been used (expired) or is still in effect (unexpired).

Accounting Period

A specific period of time used for financial reporting, often a quarter or year, during which financial information is recorded and reported.

Debit

An entry recorded on the left side of an account ledger, representing an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Credit

An accounting entry that increases a liability or equity account or decreases an asset or expense account.