If the Projected Growth Rate Is Smaller Than the Firm's

question 28

Multiple Choice

If the projected growth rate is smaller than the firm's sustainable growth rate:

• A) it should increase its projected growth rate.
• B) the firm will be required to decrease its plowback ratio.
• C) its debt-equity ratio will decrease.
• D)the firm will be required to increase borrowing.

---

Definitions:

Business Ethics

Standards of conduct and moral values regarding right and wrong actions in the work environment.

Business Person

A business person is an individual engaged in activities related to the creation, management, or operation of a business entity, aiming for profit and growth.

Loyalty

The commitment of a customer, employee, or other stakeholder to a company, brand, or product.

Social Responsibility

The practice of businesses making decisions and taking actions that positively impact society and the environment, beyond their financial obligations.