Which of the Following Statements Is Correct Concerning the Sustainable

question 56

Multiple Choice

Which of the following statements is correct concerning the sustainable growth rate?

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

---

Definitions:

Altruistic Tendencies

The inclination to act in a selfless manner, prioritizing the welfare of others even at a personal cost, reflecting a fundamental aspect of human social behavior.

Agreeableness

A personality trait characterized by warmth, friendliness, and a cooperative disposition.

Willingness to Help

An individual's predisposition to assist others in need without expecting any reward.

Diffusion of Responsibility

The phenomenon where individuals feel diminished responsibility for their actions because others are seen as equally responsible.