The Sustainable Growth Rate

question 19

Multiple Choice

The sustainable growth rate:

• A)assumes there is no external financing of any kind.
• B)assumes no additional long-term debt is available.
• C)assumes the debt-equity ratio is constant.
• D)assumes the debt-equity ratio is 1.0.
• E)assumes all income is retained by the firm.

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Definitions:

Davis and Moore

Sociologists who proposed a functionalist theory suggesting that social stratification, or the division of society into classes, has a beneficial function in society.

Social Inequality

The existence of unequal opportunities or rewards for different social positions or statuses within a society.

Privilege

Privilege is the advantage that individuals or groups have over others, often unconsciously, due to societal norms, beliefs, and structures that favor them.

Disjuncture

A separation or lack of alignment between components or ideas.