Which of the Following Will Increase Sustainable Growth

question 17

Multiple Choice

Which of the following will increase sustainable growth?

• A) Buy back existing stock.
• B) Decrease debt.
• C) Increase profit margin.
• D) Increase dividend payout ratio.

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Definitions:

Consolidated Income

The total net income of a parent company and its subsidiaries, after accounting for the share of income pertaining to noncontrolling interests.

Subsidiaries

Companies that are owned or controlled by another company, known as the parent company, through a majority of the voting stock.

Domestic Firm

A company that operates primarily within the borders of its home country and is subject to its home country's jurisdiction and regulations.

Ownership Interest

Indicates an individual's or entity's legal rights and stakes in a company or property.