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:

External Failure Cost

Costs incurred when products fail to meet quality standards after being delivered to the customer, including returns, repairs, and warranties.

Quality Cost Report

A document or set of data analyzing the costs associated with ensuring the quality of products or services, including prevention, appraisal, and failure costs.

External Failure Cost

Costs incurred when a product fails to meet quality standards after being delivered to customers, including returns, repairs, and warranty claims.

Quality Cost Report

A financial report detailing the total cost of quality-related activities, including prevention costs, appraisal costs, and failure costs.