In the Year Just Ended,Ellie May's Power Tools Had Net

question 15

Multiple Choice

In the year just ended,Ellie May's Power Tools had net income of $200,000 based upon a sales level of $1,500,000.It's total assets are $800,000 while its total equity is $700,000.If Ellie May pays out 0% of its net income in dividends,then what is the firm's sustainable growth rate going forward?

• A) .40%
• B) 38%
• C) 40%
• D) none of the above

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Definitions:

Thurstone's Multifactor Approach

A theory on intelligence by L.L. Thurstone that suggests intelligence consists of several distinct abilities rather than a single factor.

Multifactor

Relating to or involving several factors or causes.

Verbal Meaning

The interpretation or explanation of words and their use.

Flexible Battery Approach

A method in psychological assessment where a variety of tests are selected and used based on the specific needs and characteristics of the individual being evaluated.