Assume Costs and Assets Increase at the Same Rate as Sales

question 242

Multiple Choice

Assume costs and assets increase at the same rate as sales. Also assume 40% of net income is paid out in dividends. What is the maximum growth rate achievable assuming no external debt or
Equity is available?

• A) 11.2%
• B) 25.4%
• C) 35.8%
• D) 51.6%
• E) 111.8%