Which One of the Following Statements Is NOT True

question 23

Multiple Choice

Which one of the following statements is NOT true?

• A) The internal growth rate (IGR) is defined as the maximum growth rate that a firm can achieve without external financing.
• B) The higher the retained earnings generated by a firm, the higher the growth possible without using external funding.
• C) Given the same level of retained earnings, a firm that has the higher amount of total assets, the higher the growth possible without using external funding.
• D) All of the above are true.

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Definitions:

Forecasted Value

A prediction or estimate of a future value based on historical data and analysis.

Indicator Variables

Variables used in statistical models that take a value of 1 to indicate the presence of a particular condition or characteristic and 0 to indicate the absence.

NYSE Performance

An overview or analysis of how stocks listed on the New York Stock Exchange are trading, indicating overall market conditions.

Seasonal Index

A measure used in time series analysis to adjust for seasonal variation in data, often applied to forecast and analyze patterns that repeat over a standard cycle, such as a year.