The Sustainable Growth Rate

question 71

Multiple Choice

The sustainable growth rate:

• A) increases as ROE decreases.
• B) increases as the payout ratio decreases.
• C) is maximized when the plowback ratio equals zero.
• D)is always less than the internal growth rate.

---

Definitions:

Brooks

Refers to the work of psychologist Allan Brooks, known for contributions in cognitive psychology, especially in visual and spatial memory.

Exemplars

Specific instances or examples within a category that are used in cognitive psychology to theorize how people categorize items and ideas.

Prototype View

The prototype view is a theory in cognitive science suggesting that people categorize objects and ideas based on a mental image or "prototype" that represents the most typical example of a category.

Prototype

An abstract representation of an idealized member of a class of objects or events.