All of the Following Statements Are Correct Except

question 64

Multiple Choice

All of the following statements are correct except:

• A) The internal growth rate measures how quickly a firm can increase its asset base over the next year without raising outside funds.
• B) The retention rate represents the proportion of every $1 of earnings per share that is retained by the firm; in other words, it is equal to one minus the dividend payout ratio.
• C) The sustainable growth rate measures how quickly the firm can grow when it uses only debt financing to keep its capital structure constant over time.
• D) The internal and sustainable growth rate relationships suggest that there are three measurable influences on growth: dividend policy (as reflected in the retention rate), profitability (as measured by ROA), and the firm's capital structure (as measured by the equity multiplier).

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Definitions:

Competitive Salary

A salary offering that is attractive and comparable to what is being offered by competitors in the same industry or sector.

Audacious Project

A bold, ambitious initiative aimed at tackling significant challenges or achieving groundbreaking results.

Social Entrepreneurs

Individuals who pursue innovative solutions to social problems with the aim to create social value rather than just profit.

Philanthropists

Individuals or organizations that actively seek to promote the welfare of others, typically through generous donations of money to various causes.