If a Firm Does Not Pay Dividends, What Is True

question 54

Multiple Choice

If a firm does not pay dividends, what is true about the components of the sustainable growth rate?

• A)The dividend payout ratio is 100%.
• B)The retention ratio is 100%.
• C)ROE does not equal the sustainable growth rate.
• D)ROS is higher than if the firm did pay some dividends.

Understand the classical dichotomy and differentiate between real and nominal variables.

Grasp the fundamental concepts of inflation and its measurement.

Comprehend the implications of money supply changes on price levels and the value of money.

Explain the quantity theory of money and its relation to inflation.

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Definitions:

Spyware

An unwanted piggyback program that downloads with the software you want to install from the Internet and then runs in the background of your system.

Grayware

A term for software that performs unwanted or harmful actions that do not fit the strict definitions of malware or virus, often exploiting the software on a user's device without their complete consent.

White-Hat

Refers to ethical computer hackers or cybersecurity professionals who use their skills to protect systems and information from malicious hackers.

Black-Hat

Refers to unethical or illegal hacking done to exploit or harm systems, often for personal gain or to create disruption.