If a Firm Bases Its Growth Projection on the Rate

question 77

Multiple Choice

If a firm bases its growth projection on the rate of sustainable growth,shows positive net income,and has a dividend payout ratio of 30 percent,then the:

• A)fixed assets will have to increase at the sustainable growth rate,even if the firm is currently operating at only 78 percent of capacity.
• B)number of common shares outstanding will increase at the same rate of growth.
• C)debt-equity ratio will have to increase.
• D)debt-equity ratio will remain constant while retained earnings increase.
• E)fixed assets,the debt-equity ratio,and number of common shares outstanding will all increase.

Understand the concepts of transmissible diseases and their causes.

Grasp the precautionary principle approach and its implications for chemical safety.

Recognize the processes involved in screening chemicals for commercial use and their toxicity.

Identify the three most pervasive viral diseases and their implications for public health.

---

Definitions:

Unit Product Costs

The total cost associated with producing one unit of product, including direct materials, direct labor, and allocated overhead costs.

Markup

The amount added to the cost of goods to cover overhead and profit, determining the selling price.

Selling Price

The amount of money a customer pays to buy a product or service.

Total Job Cost

The total cost associated with producing a specific job, including materials, labor, and overhead costs.