Which of the Following Changes Will Decrease a Firm's Internal

question 70

Multiple Choice

Which of the following changes will decrease a firm's internal growth rate?

• A) A decrease in dividends with a given net income
• B) An increase in net income with a given dividend payout ratio
• C) A decrease in the plowback ratio
• D) A decrease in assets with a set dividend

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Definitions:

Signaling Device

A method or mechanism used to convey information about the quality or value of a product, service, or candidate in a market.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to an organization or country.

Compensating Differentials

Wage differences among jobs that reflect the desirability of the job or the cost associated with undesirable job attributes.

Monetary Compensation

The financial payment given to an employee for their services or to an individual as a settlement.