The Custom of Following Already Decided Cases Is Called

question 159

Multiple Choice

The custom of following already decided cases is called

• A) stare decisis.
• B) a civil law system.
• C) a common law.
• D) res judicata.
• E) ultra vires.

---

Definitions:

Sustainable Growth Rate

The rate at which a company can grow its sales, earnings, and dividends without borrowing new funds.

Debt-equity Ratio

A gauge of a company's use of borrowing relative to the equity provided by its shareholders, determined by dividing liabilities by shareholders' equity.

Plowback Ratio

The proportion of earnings that a company reinvests in its business rather than distributing to shareholders.