External Financing Needed: Triumph Company Has Total Assets Worth $6,413,228

question 18

Multiple Choice

External financing needed: Triumph Company has total assets worth $6,413,228. Next year it expects a net income of $3,145,778 and will pay out 70 percent as dividends. If the firm wants to limit its external financing to $1 million, what is the growth rate it can support?

• A) 32.9%
• B) 6.4%
• C) 30.3%
• D) 26.5%

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Definitions:

APA

American Psychological Association, the leading scientific and professional organization representing psychology in the United States.

Ph.D. in Psychology

A Doctor of Philosophy degree in the field of psychology, which represents the highest level of education, emphasizing research, theory, and practice in understanding human behavior.

Bachelor's Degree

An undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to seven years, depending on the area of study.

Kenneth Clark

An American psychologist who, with his wife Mamie Clark, played a key role in the Brown v. Board of Education case with their research on racial bias in education.