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31.A firm can achieve a higher growth rate (within limits)

Question : 31.A firm can achieve a higher growth rate (within limits) : 1409609

 

31.A firm can achieve a higher growth rate (within limits) without raising external capital by: 
 
 

A. increasing the proportion of debt in its capital structure.

B. increasing its current ratio.

C. decreasing its inventory turnover.

D. increasing its plowback ratio.

32.The sustainable growth rate equals: 
 
 

A. plowback ratio × return on equity.

B. return on equity/plowback ratio.

C. return on assets × plowback ratio.

D. plowback ratio × return on equity × (equity/net assets).

33.Last year Axle Inc. reported net assets of $400, equity of $200, net income of $50, dividends of $10, and earnings retained in the period of $40. What is Axle Inc.'s internal growth rate? 
 
 

A. 10.0%

B. 57.1%

C. 20.0%

D. 71.4%

34.Last year Axle Inc. reported total assets of $400, equity of $200, net income of $50, dividends of $10, and earnings retained in the period of $40. What is Axle Inc.'s sustainable growth rate? 
 
 

A. 25.0%

B. 57.1%

C. 20.0%

D. 71.4%

35.Last year Foley Inc. reported total assets of $500, equity of $400, net income of $100, dividends of $50, and earnings retained in the period of $50. What is Foley Inc.'s sustainable growth rate? 
 
 

A. 17.5%

B. 30.0%

C. 10.0%

D. 12.5%

36.Last year Foley Inc. reported net fixed assets of $400, net working capital of $100, net income of $120, dividends of $70, and earnings retained in the period of $50. What is Foley Inc.'s internal growth rate? 
 
 

A. 17.5%

B. 30.0%

C. 10.0%

D. 12.5%

 

 

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