A Decrease in Which One of the Following Will Increase

question 67

Multiple Choice

A decrease in which one of the following will increase a firm's sustainable rate of growth?

• A)net income
• B)dividend payout ratio
• C)total assets
• D)retention ratio
• E)earnings per share

---

Definitions:

Operating Cash Flow

The amount of cash generated by a company's normal business operations.

Contribution Margin

The amount by which sales revenue exceeds variable costs, used to cover fixed costs and to generate profit.

Sales Quantity

The total number of units of a product or service sold within a specific period.

Variable Cost

A corporate expense that changes in proportion with the level of output or sales.