The Sustainable Growth Rate of a Firm Is Best Described

question 16

Multiple Choice

The sustainable growth rate of a firm is best described as the:

• A) minimum growth rate achievable assuming a 100 percent retention ratio.
• B) minimum growth rate achievable if the firm maintains a constant equity multiplier.
• C) maximum growth rate achievable excluding external financing of any kind.
• D) maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio.
• E) maximum growth rate achievable with unlimited debt financing.
• F) None of the above.

---

Definitions:

Interposition

A visual cue in which one object partly blocks another, suggesting that the blocking object is closer to the observer.

Linear Perspective

A depth cue in art and visual perception where parallel lines appear to converge as they recede into the distance, helping the observer to perceive depth.

Binocular Cues

Depth cues, such as retinal disparity, that depend on the use of both eyes and are crucial in perceiving depth.

Pheromones

Chemical substances released by animals and humans that influence the behavior or physiology of others of the same species, often in the context of social communication or mating.