Which One of the Following Statements Is Correct for a Firm

question 50

Multiple Choice

Which one 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 debt-to-asset ratio may decline.
• C) The firm's ROE must increase.
• D)The debt-equity ratio will increase unless equity is issued.

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Definitions:

Second-Level Items

Elements or points that are part of a secondary layer of hierarchy or importance in a structured list or outline.

Spatially

Relating to, occupying, or having the character of space, used to describe how objects or phenomena exist in and move through space.

Organizational Pattern

A structure or format in writing or speech that arranges information in a specific way for clarity and effect.

Work-Experience

Practical experience gained through performing tasks or working in a specific field or job.