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Which One of the Following Will Cause the Sustainable Growth

Question 37

Multiple Choice

Which one of the following will cause the sustainable growth rate to equal to internal growth rate?


A) dividend payout ratio greater than 1.0
B) debt-equity ratio of 1.0
C) retention ratio between 0.0 and 1.0
D) equity multiplier of 1.0
E) zero dividend payments

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