A Firm Wishes to Maintain a Growth Rate of 8

question 74

Multiple Choice

A firm wishes to maintain a growth rate of 8 percent and a dividend payout ratio of 62 percent.The ratio of total assets to sales is constant at 1,and the profit margin is 10 percent.What must the debt-equity ratio be if the firm wishes to keep that ratio constant?

• A)0.05
• B)0.40
• C)0.55
• D)0.60
• E)0.95

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Definitions:

Comorbidity

The presence of one or more additional diseases or disorders co-occurring with a primary disease or disorder.

ADHD

Attention Deficit Hyperactivity Disorder (ADHD) is a neurodevelopmental disorder characterized by problems with focus, hyperactivity, and impulsive behavior.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by patterns of inattention, impulsivity, and/or hyperactivity that interfere with functioning or development.

Off-Label

The use of pharmaceutical drugs for an unapproved indication or in an unapproved age group, dosage, or route of administration.