Which of the Following Statements Is True Regarding Corporate Performance

question 76

Multiple Choice

Which of the following statements is true regarding corporate performance ratios?

• A) A high payout ratio may indicate that a company is retaining earnings for future growth investments.
• B) As a company grows larger, it is easy to sustain a high return on common stockholder's equity.
• C) Return on common stockholder's equity is often higher under bond financing rather than common stock financing.
• D) Companies low growth rates are characterized by low payout ratios.

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