The Sustainable Growth Rate Will Be Equivalent to the Internal

question 28

Multiple Choice

The sustainable growth rate will be equivalent to the internal growth rate when:

• A) a firm has no debt.
• B) the growth rate is positive.
• C) the plowback ratio is positive but less than 1.
• D) a firm has a debt-equity ratio exactly equal to 1.
• E) net income is greater than zero.

---

Definitions:

Parental Chromosome Number

The parental chromosome number refers to the specific number of chromosomes found in the genetic material an organism inherits from its parents, typically half from each.

Parent Cell

The cell that divides to give rise to daughter cells during cell division.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA.

Meiosis

A type of cell division that results in four daughter cells each with half the number of chromosomes of the parent cell, essential for sexual reproduction.