Which of the Following Can Affect a Firm's Sustainable Rate

question 5

Multiple Choice

Which of the following can affect a firm's sustainable rate of growth?
I.Asset turnover ratio
II.Profit margin
III.Dividend policy
IV.Financial leverage

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

---

Definitions:

Yield Curve

A graph showing the relationship between bond yields and their maturities, indicating the differences in yield over various durations.

Positive Slope

In a graph, a line that goes up to the right, indicating a positive relationship or increase between two variables.

Liquidity Preference Theory

A theory that suggests interest rates are determined by the supply and demand for money, with people preferring liquidity over committing to long-term investments.

Upward Sloping

A term that describes a line or curve on a graph that shows an increase in a variable in relation to another variable as you move from left to right.