The Sustainable Rate of Growth Can Be Increased by

question 7

Multiple Choice

The sustainable rate of growth can be increased by

• A)decreasing the equity multiplier.
• B)increasing the profit margin.
• C)decreasing the debt-equity ratio.
• D)increasing the dividend payout ratio.
• E)increasing the capital intensity ratio.

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Definitions:

Purchase of Assets

involves acquiring assets of a company rather than its stock, usually in the context of mergers and acquisitions, focusing on buying specific assets like equipment, inventories, and property.

TradeMarks

Symbols, words, or phrases legally registered or established by use as representing a company or product.

Appraisal Rights

The right of shareholders to have their shares appraised and to receive monetary compensation in lieu of accepting the terms of certain corporate actions, like mergers.

Shareholder Meeting

is a gathering of a company's shareholders, held to discuss the company's performance, elect the board of directors, and make other decisions affecting the company.