A Firm Has ROA of 12%,ROE of 20%,and a Retention

question 30

Multiple Choice

A firm has ROA of 12%,ROE of 20%,and a retention rate of 40%.What is the firm's internal growth rate?

• A)20%
• B)12%
• C)4.8%
• D)8%
• E)7.2%

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Definitions:

Salivate

The secretion of saliva in the mouth by the salivary glands, often in response to the sight, smell, or taste of food.

Elicits

To draw out or bring forth a response or answer through various means.

UCS

Unconditioned Stimulus; in classical conditioning, it is something that naturally and automatically triggers a response without any learning needed.

UCR

stands for Unconditioned Response, an automatic and natural reaction to an unconditioned stimulus, not learned or conditioned.