A Company Has a Net Income of $238,000, Total Assets

question 123

Multiple Choice

A company has a net income of $238,000, total assets of $1,784,000 and total liabilities of $437,000. The company paid $66,640 in dividends. What is the sustainable growth rate of this firm?

• A) 11.69%
• B) 14.18%
• C) 15.14%
• D) 12.73%
• E) 18.32%

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Definitions:

Demand Curve

An illustrated chart showing the connection between a product's price and the level of demand from buyers.

Price of Quinoa

The cost at which quinoa, a high-protein, gluten-free grain, is sold in the market.

Equilibrium Price

The price at which the quantity of goods suppliers are willing to sell equals the quantity consumers are willing to buy, also known as the market-clearing price.

Quantity Supplied

The quantity of a product or service that suppliers are ready and capable of offering for sale at a specific price point.