The Internal Rate of Growth Is Based on the Assumption

question 87

Multiple Choice

The internal rate of growth is based on the assumption that

• A)no dividends are paid.
• B)no external funding of any type is obtained.
• C)the return on equity is held constant.
• D)the only additional outside capital obtained is long-term debt.
• E)the debt-equity ratio is held constant.

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Definitions:

Merger

The combining of two or more companies into a single entity, typically with one company absorbing the others.

Combination

The act of merging or joining two or more entities into a single one, often used in the context of business mergers and acquisitions.

Shareholders' Approval

A formal consent required from shareholders to validate certain company decisions or actions.

SEC Approval

Official authorization or endorsement by the Securities and Exchange Commission, often required for securities transactions or registrations.