Which of the Following Is True of the Sustainable Growth

question 97

Multiple Choice

Which of the following is true of the sustainable growth rate concept?

• A)It is an empirical measure of a firm's strength.
• B)It assumes that the financial ratios change at a constant rate.
• C)It assumes that the firm doesn't raise any new equity by selling stock.
• D)It is the growth in assets created by additional external funding.

---

Definitions:

Partisanship

The strong support of a specific party, cause, or ideology, often leading to bias or reluctance to consider alternative viewpoints.

Umpire

An official who enforces the rules in a sport or game, ensuring fair play.

Adversarial System

This is a legal system in which two opposing parties present their cases to an impartial judge or jury, used primarily in common law countries.

Morally Repugnant

Something that is considered extremely offensive and unacceptable by moral standards.