A Firm Has Net Income of $320,000 and Sales of $3,200,000

question 38

Multiple Choice

A firm has net income of $320,000 and sales of $3,200,000. Its assets total $2,000,000, the equity at the beginning of the year was $1,600,000, and dividends paid were $80,000. What is the sustainable growth rate?

• A)5.50%
• B)15.00%
• C)6.25%
• D)4.75%

---

Definitions:

Self-Efficacy Expectations

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments, reflecting confidence in the ability to exert control over one's own motivation, behavior, and social environment.

Psychologically Hardy

The characteristic of being resilient in the face of stress and adversity, involving qualities like commitment, control, and challenge.

Irrational Beliefs

Misguided, unrealistic thoughts and convictions that can lead to unproductive emotions and behavior, often examined in the context of cognitive-behavioral therapy.

Catastrophizing

A cognitive distortion involving an irrational thought pattern where an individual expects or exaggerates the worst possible outcome in a situation.