Which of the Following Actions Would Help a Firm's Growth

question 24

Multiple Choice

Which of the following actions would help a firm's growth problem if its actual sales growth exceeds its sustainable rate of growth?
I.Increase prices
II.Decrease financial leverage
III.Decrease dividends
IV.Prune away less-profitable products

• A) I and II only
• B) I and III only
• C) I,II,and IV only
• D) I,III,and IV only
• E) I,II,III,and IV

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividend payments.

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a claim on profits in the form of dividends.

Capital Stock

The total amount of a company's capital, represented by the shares of its stock.

Commission Charges

Commission charges are fees paid for services, particularly in the fields of finance and real estate, calculated as a percentage of the transaction value.