If a Firm Pays Out 30% of Its Earnings as Dividends

question 24

Multiple Choice

If a firm pays out 30% of its earnings as dividends and has averaged a 20 percent return on assets,how quickly can the firm grow without needing to secure outside funding sources?

• A)6.4%.
• B)10.2%.
• C)14.3%.
• D)20.0%.
• E)none of the above.

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Definitions:

Cholesterol Screenings

Tests that measure the levels of cholesterol in the blood to assess cardiovascular health.

Cardiac Surgery

Surgery performed on the heart or great vessels, typically to treat complications of heart disease or correct congenital heart defects.

Hypothermia Blanket

A medical device used to lower a patient's body temperature to treat conditions such as hyperthermia or to reduce metabolic demand.

Heart Surgery

A range of surgical procedures performed on the heart or its vessels to correct congenital defects, treat valvular heart diseases, or manage ischemic heart disease.