Last Year, Axle Inc

question 27

Multiple Choice

Last year, Axle Inc.reported total assets of $400, equity of $200, net income of $50, dividends of $10, and earnings retained in the period of $40.What is Axle Inc.'s sustainable growth rate?

• A)25 percent
• B)57.1 percent
• C)20 percent
• D)71.4 percent

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Definitions:

Logic of Statements

Concerns the principles and criteria for evaluating the validity and coherence of declarative sentences that assert something.

Conjunction

A grammatically correct construction used to assert that two statements are both true.

Logic of Statements

The study and application of the principles of valid inference and correct reasoning, especially as it applies to statements.

Valid Inferences

Reasonable conclusions or judgments drawn from evidence and reasoning rather than explicit statements.