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Peterson Company has both fixed and variable costs. If the volume doubles, the total variable costs will double.
Payout Ratio
The proportion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company's total earnings.
Net Income
The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.
Internal Growth Rate
The maximum growth rate a firm can achieve without resorting to external financing.
Sustainable Growth Rate
The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage.
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