All of the Following Statements Are Correct Except

question 107

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 plus the dividend payout ratio.
• C) The sustainable growth rate measures how quickly the firm can grow when it uses both internal equity and 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:

Greenwashing

The practice of making misleading or unsubstantiated claims about a product's environmental benefits to appeal to eco-conscious consumers.

Environmental Benefits

The positive effects on the natural environment from certain actions, policies, or products, such as air and water quality improvement and biodiversity conservation.

Environmental Spin

The practice of presenting products, activities, or policies as more environmentally friendly than they actually are, often to mislead or manipulate public perception.

Recognizing Need

The initial step in the decision-making process, involving the realization that a difference exists between a current state and a desired state.