If a firm bases its growth projection on the rate of sustainable growth, shows p

Question

If a firm bases its growth projection on the rate of sustainable growth, shows positive net income, and has a dividend payout ratio of 30 percent, then the: debt-equity ratio will remain constant while retained earnings increase. fixed assets will have to increase at the same rate, even if the firm is currently operating at only 78 percent of capacity. number of common shares outstanding will increase at the same rate of growth. fixed assets, the debt-equity ratio, and number of common shares outstanding will all increase. debt-equity ratio will have to increase.

Explanation / Answer

f a firm bases its growth projection on the rate of sustainable growth, shows positive net income, and has a dividend payout ratio of 30 percent, then the: debt-equity ratio will remain constant while retained earnings increase

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.