The Sustainable Growth Rate Will Be Equivalent to the Internal

question 70

Multiple Choice

The sustainable growth rate will be equivalent to the internal growth rate when:

• A)net income is greater than zero.
• B)the plowback ratio is positive but less than 1.
• C)the growth rate is positive.
• D)a firm has a debt-equity ratio exactly equal to 1.
• E)a firm has no debt.

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Definitions:

Historical Standard Deviation

A measure of volatility or variability based on past data, indicating how much the values in a dataset have deviated from the mean over a certain period.

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The Law School Admission Test, a standardized test designed to assess critical reading, analytical reasoning, and logical reasoning skills.

National Average

The average of a specific variable or measurement across an entire nation, often used in economic, educational, or environmental statistics.

University of Pennsylvania

An Ivy League research university located in Philadelphia, known for its strong programs in business, engineering, and medical research.