If a Firm Does Not Have Any Debt, What Is

question 32

Multiple Choice

If a firm does not have any debt, what is true about the components of the sustainable growth rate?

• A)The retention ratio is 100%.
• B)The dividend payout ratio is 100%.
• C)The ROA multiplied by the retention ratio is equal to the sustainable growth rate
• D)The ROE is greater than the ROA.

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Definitions:

Proletariat

The workers.

Bourgeoisie

A social class characterized by their ownership of capital and their related economic, social, and cultural dominance.

Social Inequality

The uneven distribution of resources, opportunities, and privileges among different social groups, leading to disparities in wealth, power, and quality of life.

Occupational Prestige

The collective societal perception of the respect, admiration, or importance associated with a job or career.