Solved

If a Firm Does Not Have Any Debt, What Is

Question 32

Multiple Choice

If a firm does not have any debt, what is true about the components of the sustainable growth rate?


A) The retention ratio is 100%.
B) The dividend payout ratio is 100%.
C) The ROA multiplied by the retention ratio is equal to the sustainable growth rate
D) The ROE is greater than the ROA.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions