All of the Following Statements Are Correct Except

question 88

Multiple Choice

All of the following statements are correct except:

• A)The internal growth rate measures how quickly a firm can increase its asset base over the next year without raising outside funds.
• B)The retention rate represents the proportion of every $1 of earnings per share that is retained by the firm; in other words, it is equal to one minus the dividend payout ratio.
• C)The sustainable growth rate measures how quickly the firm can grow when it uses only debt financing to keep its capital structure constant over time.
• D)The internal and sustainable growth rate relationships suggest that there are three measurable influences on growth: dividend policy (as reflected in the retention rate), profitability (as measured by ROA), and the firm's capital structure (as measured by the equity multiplier).
• E)All of the above statements are correct.

---

Definitions:

Sexually Excited

The state of heightened arousal and anticipation of sexual activity, often characterized by physical and psychological responses.

Retrograde Ejaculation

A condition where semen enters the bladder instead of exiting through the urethra during ejaculation.

Urethral Opening

The external opening of the urethra, through which urine exits the body; its location differs in males and females.

Tranquilizers

Drugs used to reduce tension or anxiety, often affecting the central nervous system to induce relaxation.