Donovan Brothers,Inc

question 39

Multiple Choice

Donovan Brothers,Inc.would like to increase its internal rate of growth.Decreasing which one of the following will help the firm achieve its goal?

• A)Return on assets
• B)Net income
• C)Retention ratio
• D)Dividend payout ratio
• E)Return on equity

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Definitions:

Implementation Costs

Expenses associated with putting a newly adopted system, plan, or policy into effect.

Arbitrage

The practice of buying and selling assets in different markets or in different forms to profit from price discrepancies.

Confirmation Bias

Searching for (and giving more weight to) information and opinion that confirms what you believe rather than information and opinion to the contrary.

Over-Optimism

A tendency to have an overly positive outlook or expectations, particularly regarding projects or financial forecasts.