Marcie's Mercantile Wants to Maintain Its Current Dividend Policy,which Is

question 19

Multiple Choice

Marcie's Mercantile wants to maintain its current dividend policy,which is a payout ratio of 40%. The firm does not want to increase its equity financing but is willing to maintain its current debt-equity ratio. Given these requirements,the maximum rate at which Marcie's can grow is equal to:

• A) 40% of the internal rate of growth.
• B) 60% of the internal rate of growth.
• C) the internal rate of growth.
• D) the sustainable rate of growth.
• E) 60% of the sustainable rate of growth.

---

Definitions:

Specific Situation

A detailed or particular set of circumstances or conditions that is distinct from others.

Specific Message

A communication or piece of information that is tailored or directed towards a particular group, individual, or purpose.

Audience Interest

The level of curiosity, attention, or engagement shown by the audience toward the subject matter or content presented.

Read Or Listen

The act of obtaining information or experiencing stories through reading text or listening to audio.