The Potato Patch Has a Retention Ratio of

question 64

Multiple Choice

The Potato Patch has a retention ratio of .80,dividends of $52,000,and total equity of $3.3 million.What is the firm's sustainable rate of growth?

• A)1.58 percent
• B)4.22 percent
• C)6.30 percent
• D)7.38 percent
• E)8.54 percent

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Definitions:

Guthrie

An American psychologist who proposed the theory of contiguity, suggesting that learning occurs when a stimulus and response occur close together in time.

Crying Behavior

An emotional and physiological response that can serve various functions, including communication, self-soothing, or as a response to stress or stimuli.

Store

To keep or accumulate something for future use.