A Firm That Wants to Increase Its Sustainable Growth Rate

question 25

Multiple Choice

A firm that wants to increase its sustainable growth rate can do so by __________ the __________ ratio or by __________ the __________ or both.

• A) Increasing; payout; increasing; ROE
• B) Increasing; plowback; increasing; ROE
• C) Decreasing; plowback; increasing; ROE
• D) Decreasing; payout; decreasing; ROE

Apply the concept of the financial control process including its significance and types.

Analyze the concept of project management and its techniques.

Distinguish between different types of control systems and their applications in business.

Understand the components and significance of a balanced scorecard in measuring organizational performance.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends and without voting rights.

Stock Split

An action by a company to divide its existing shares into multiple new shares to boost the liquidity of the shares, though the overall value of one’s investment remains the same.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Earnings Per Share

A financial metric calculated by dividing a company's net income by the number of its outstanding shares of common stock.