Which One of the Following Will Increase the Sustainable Rate

question 31

Multiple Choice

Which one of the following will increase the sustainable rate of growth a corporation can achieve?

• A) avoidance of external equity financing
• B) increase in corporate tax rates
• C) reduction in the retention ratio
• D) decrease in the dividend payout ratio
• E) decrease in sales given a positive profit margin

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Definitions:

Salesperson's Statement

A formal or informal communication by a salesperson, intended to persuade or inform potential buyers about a product or service.

Bargaining Process

The series of negotiations and compromises between two or more parties seeking to make a mutually acceptable agreement.

Breach of Warranty

Failure to fulfill the terms of a promise, claim, or representation made about the quality or type of a product.

Repair or Replace

This refers to the decision or policy regarding whether to fix a damaged or malfunctioning item or to substitute it with a new one.