Which of These Ratios Are the Determinants of a Firm's

question 9

Multiple Choice

Which of these ratios are the determinants of a firm's sustainable growth rate?
I.Assets-to-equity ratio
II.Profit margin
III.Retention ratio
IV.Asset turnover ratio

• A) I and III only
• B) II and III only
• C) II, III, and IV only
• D) I, II, and III only
• E) I, II, III, and IV
• F) None of the above.

---

Definitions:

Consideration

In contract law, consideration refers to something of value exchanged between parties as part of an agreement.

Good Faith Purchasers

Individuals who buy property without knowledge of any existing claims or issues, often protected by law.

Infants

Legally refers to individuals who are under the age of majority, typically considered to be 18 years in many jurisdictions, and who are thus limited in their ability to enter into contracts.

Minors

Individuals under the age of legal adulthood, which varies by country, typically recognized as under 18 or 21 years old.