Whereas the Mission Statement Answers the Question, "What Do We

question 81

True/False

Whereas the mission statement answers the question, "What do we want to become?" the vision statement answers the question, "What is our business?"

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Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its earnings without needing to increase its equity or take on new debt.

Dividend Payout Ratio

The percentage of a company's earnings that is distributed to shareholders in the form of dividends.

Equity Multiplier

A financial ratio indicating how much of a company's assets are financed by shareholders' equity.

Dividend Payout Ratio

The fraction of net income a firm pays to its stockholders in dividends, expressed as a percentage of the company's total earnings.