Pizza Pie Maintains a Constant Debt-Equity Ratio of

question 73

Multiple Choice

Pizza Pie maintains a constant debt-equity ratio of .55.The firm had net income of $14,800 for the year and paid $12,000 in dividends.The firm has total assets of $248,000.What is the sustainable growth rate?

• A)3.38 percent
• B)2.27 percent
• C)1.78 percent
• D)3.62 percent
• E)4.97 percent

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Definitions:

Freedom Of Choice

The power or right to make one's own decisions without coercion or constraint.

Positive Freedom

The concept of freedom defined by the presence of capabilities and resources to fulfill one's own potential, emphasizing what individuals are free to do.

Determinism

The philosophical belief that all events, including moral choices, are completely determined by previously existing causes.

Predictability

The characteristic of a process, principle, or system that enables it to be known or declared in advance, especially through the application of scientific or logical techniques.