Sterling Inc

question 83

Multiple Choice

Sterling Inc. currently has sales of $4,512,644 and net income of $736,253. It has a debt ratio of 47 percent and a dividend payout ratio of 65 percent. The company has total assets of $3,812,832. What is the company's sustainable growth rate? (In your interim computations, round your ROE percentage to one decimal place.)

• A) 12.74%
• B) 23.72%
• C) 18.96%
• D) 20.10%

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Definitions:

HR Gap

A shortage of human capital such that the organization is unable to meet its current or forecasted human capital requirements.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can contribute to an organization's performance and economy.

Shortage

A situation in which the demand for a product or service exceeds the available supply, often leading to higher prices or unmet consumer needs.

Organizational Flexibility

The ability of an organization to adapt rapidly and efficiently to changes in the internal and external environment.