Determine a Venture's Sustainable Growth Rate Based on the Following

question 20

Multiple Choice

Determine a venture's sustainable growth rate based on the following information: sales = $1,000,000; net income = $150,000; common equity at the end of last year = $520,000; and the dividend payout percentage = 20%.

• A) 10%
• B) 16%
• C) 20%
• D) 24%
• E) 30%

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Definitions:

Bases of Power

The foundations from which an individual or group derives their ability to influence others, usually classified into categories like coercive, reward, legitimate, expert, and referent power.

Informal Systems

The unofficial and unwritten ways that an organization operates, including social networks, practices, and norms that influence behavior and decisions.

Organizational Politics

The use of power and social networking within a workplace to achieve changes that benefit the individual or group.

Power Bases

The various sources of influence and authority an individual or organization possesses, which can affect others' behaviors and perceptions.