If a Firm Wants to Maintain Its Present Ratio of Debt

Multiple Choice

If a firm wants to maintain its present ratio of debt to equity, its present dividend payout ratio, and does not want to sell any new equity, the firm's growth rate in sales and assets must be less than or equal to its:

A) Dividend payout ratio.
B) Retention ratio.
C) Sustainable growth rate.
D) Growth rate with no external financing.
E) Projected sales growth rate.