Which One of These Combinations Will Provide Sufficient Information to Determine

question 22

Multiple Choice

Which one of these combinations will provide sufficient information to determine the sustainable growth rate of a firm?

• A)Profit margin,total asset turnover,and the price-earnings ratio
• B)Profit margin,dividend payout ratio,debt-equity ratio,and total asset turnover
• C)Return on assets and the retention ratio
• D)Return on assets,capital intensity ratio,and the retention ratio
• E)Profit margin,total asset turnover,return on assets,and debt-equity ratio

---

Definitions:

New Price

Refers to the updated or current price of a product or service that may differ from previous pricing.

Legally Sufficient

A term that implies a claim, defense, or other legal assertion meets the minimum legal requirements to proceed in a court of law.

Fair Market Value

The price that property would sell for on the open market between a willing buyer and a willing seller.

Preexisting Duty

An obligation that a party is already legally required to perform, which cannot serve as consideration for a new contract.