If a Firm Has a 100 Percent Dividend Payout Ratio

question 52

Multiple Choice

If a firm has a 100 percent dividend payout ratio, then the internal growth rate of the firm is:

• A)zero percent.
• B)100 percent.
• C)equal to the ROA.
• D)negative.
• E)infinite.

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Definitions:

Collective Bargaining

The negotiation process between employers and a group of employees aimed at establishing salaries, working conditions, and other terms of employment.

Traditional Approaches

Conventional methods or techniques that have been historically used in a particular field or discipline.

Extra Costs

Additional expenses incurred beyond the initially planned or expected amounts in any activity or project.

Autonomy

In a job context, independence—having control over one’s work and one’s response to the work environment.