Which of the Following Statements Is True Regarding Corporate Performance

Multiple Choice

Which of the following statements is true regarding corporate performance ratios?

A) A high payout ratio may indicate that a company is retaining earnings for future growth investments.
B) As a company grows larger, it is easy to sustain a high return on common stockholder's equity.
C) Return on common stockholder's equity is often higher under bond financing rather than common stock financing.
D) Low growth rates are characterized by low payout ratios.