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A Firm Has Adopted a Policy Whereby It Will Not

Question 1

Multiple Choice

A firm has adopted a policy whereby it will not seek any additional external financing.Given this,what is the maximum growth rate for the firm if it has net income of $12,100,total equity of $94,000,total assets of $156,000,and a 40 percent dividend payout ratio?


A) 4.88 percent
B) 5.11 percent
C) 6.62 percent
D) 7.67 percent
E) 8.37 percent

Correct Answer:

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