All of the Following Statements Are Correct Except

question 30

Multiple Choice

All of the following statements are correct except:

• A)The internal growth rate measures how quickly a firm can increase its asset base over the next year using outside funds.
• B)The retention rate represents the proportion of every $1 of earnings per share that is retained by the firm;in other words,it is equal to one plus the dividend payout ratio.
• C)The sustainable growth rate measures how quickly the firm can grow when it uses only debt financing to keep its capital structure constant over time.
• D)The internal and sustainable growth rate relationships suggest that there are three measurable influences on growth: working capital policy,total asset turnover,and the firm's borrowing rate.
• E)None of the above statements are correct.

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Definitions:

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Positive Feedback

A process in which the end products of an action cause more of the action to occur in a feedback loop, amplifying the original action.

Aspiration

A strong desire, longing, or ambition for achieving something.

Reinforced

Strengthened or emphasized, often in the context of behavior strengthened by rewards or positive outcomes.