A Firm Has Adopted a Policy Whereby It Will Not

question 1

Multiple Choice

A firm has adopted a policy whereby it will not seek any additional external financing.Given this,what is the maximum growth rate for the firm if it has net income of $12,100,total equity of $94,000,total assets of $156,000,and a 40 percent dividend payout ratio?

• A)4.88 percent
• B)5.11 percent
• C)6.62 percent
• D)7.67 percent
• E)8.37 percent