Which of the Following Statements Is Correct for a Firm

question 43

Multiple Choice

Which of the following statements is correct for a firm that has a sustainable growth rate that exceeds its projected growth rate in assets?

• A) The projected growth in assets will be restricted.
• B) The internal growth rate will provide the remaining assets.
• C) The firm's ROE must increase.
• D) The debt-equity ratio will increase unless equity is issued.

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Definitions:

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the outcome itself.

Fake Followers

Social media accounts that are artificial or bot-generated, created to inflate a user's number of followers.

Checklist

A list of items required, things to be done, or points to be considered, used as a reminder.

Necessary Components

Essential parts or elements required for a system, process, or mechanism to function properly.