Which of the Following Will Not Permit a Higher Internal

question 83

Multiple Choice

Which of the following will not permit a higher internal growth rate,other things equal?

• A) A higher plowback ratio
• B) A higher debt-to-asset ratio
• C) A higher return on equity
• D) A higher return on assets

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Definitions:

Increasing-cost Industry

An industry in which the costs of production increase as the industry output increases, often due to the inputs' prices rising as demand for them grows.

Long-run Supply Curve

A graphical representation showing the quantities of goods that a producer is willing and able to supply over a period when all costs are variable.

Elastic Supply Curve

A concept in economics describing a supply curve where the quantity supplied changes significantly in response to a change in price.

Purely Competitive Market

An economic structure where numerous small companies, a uniform product, unimpeded access and exit, and absolute knowledge prevail.