Which of the Following Statements Is Correct for a Firm

question 43

Multiple Choice

Which of the following statements is correct for a firm that has a sustainable growth rate that exceeds its projected growth rate in assets?

• A) The projected growth in assets will be restricted.
• B) The internal growth rate will provide the remaining assets.
• C) The firm's ROE must increase.
• D) The debt-equity ratio will increase unless equity is issued.

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Definitions:

Import Tariffs

Taxes imposed by a government on goods imported from other countries to protect domestic industries or generate revenue.

Export

The act of shipping goods and services from one country to another for sale or trade.

Bulky

Describes items that are large in volume or size compared to their weight, often resulting in challenges with transport, storage, or handling.

Heavy Machineries

Large and heavy vehicles or equipment used for construction, industrial, or agricultural purposes.