The Internal Rate of Growth Is Based on the Assumption

question 35

Multiple Choice

The internal rate of growth is based on the assumption that

• A)no dividends are paid.
• B)no external funding of any type is obtained.
• C)the return on equity is held constant.
• D)the only additional outside capital obtained is long-term debt.
• E)the debt-equity ratio is held constant.

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Definitions:

Phosphate Group

A functional group or radical comprising one phosphorus atom connected to four oxygen atoms, often involved in energy transfer in biological systems.

Five-Carbon Sugar

A type of sugar molecule that contains five carbon atoms, examples include ribose and deoxyribose, important in RNA and DNA structures.

Plasmids

Small, circular, double-stranded DNA molecules found in bacteria and some yeasts, separate from chromosomal DNA and often carry genes beneficial for survival.

Circular DNA

DNA that forms a closed-loop structure, characteristic of bacterial chromosomes and plasmids, facilitating gene transfer and replication.