A Firm Has a Return on Equity of 16 Percent

question 95

Multiple Choice

A firm has a return on equity of 16 percent, a return on assets of 11 percent, and a 40 percent dividend payout ratio. What is the sustainable growth rate?

• A) 5.72 percent
• B) 6.84 percent
• C) 7.12 percent
• D) 9.58 percent
• E) 10.62 percent

Understand the concept and importance of unity of command in organizational structure.

Distinguish between line and staff units within an organization.

Comprehend the hierarchy of authority and its significance in organizing work positions.

Recognize the role of process controls in organizational management.

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Definitions:

Tangible Attributes

Physical features or characteristics of a product that can be sensed directly, such as size, design, or color.

Reputation

The general belief or opinion that the public has about the character, quality, or credibility of a person, company, or product.

Marketing Mix

A framework for managing and coordinating a company's marketing strategies, traditionally categorized into four Ps: product, price, place, and promotion.

Inventory

The total amount of goods and materials held in stock by a business, warehouse, or point of sale.