Which of the Following Would Be the BEST Reason to Use

question 1

Multiple Choice

Which of the following would be the BEST reason to use sustainable growth in a constant perpetual growth model?

• A) The sustainable growth rate is the largest rate at which earnings retention is sufficient to maintain the level of dividend growth continuously in the future.
• B) In the long run, a company's growth is dictated by the dividends they can sustain.
• C) It represents the rate at which a company, given the rate at which earnings grow, can increase dividends without having to sacrifice future earnings growth.
• D) It is the growth rate at which retained earnings growth is equal to the rate of capital deprecation.
• E) It is the rate at which dividend can grow without cannibalizing future the ROE.

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Definitions:

Ribbon Commands

UI elements in software, particularly Microsoft applications, that group commands and features under tabs on the ribbon toolbar.

Toggles

Buttons or switches that can be clicked or pressed to alternate between two or more states or modes.

Sparkline Charts

Compact, inline charts embedded in a spreadsheet cell or text to provide a visual snapshot of data or trends.

Win/Loss

A metric or record used to track outcomes of competitive events, often seen in sales, sports, and gaming.