Which of the following are determinants of a firm's sustainable rate of growth? I. Amount of sales generated from each dollar invested in assets
II) Amount of debt per dollar of equity
III) Amount of current assets per dollar of current liabilities
IV) Percent of net income distributed as dividends
A) I and III only
B) II and IV only
C) I, II, and IV only
D) II, III, and IV only
E) I, II, III, and IV

Question

Quizplus · Accepted Answer

The sustainable growth rate is influenced by asset efficiency (I), financial leverage (II), and dividend policy (IV). Current ratio (III) is not directly related.

Which of the Following Are Determinants of a Firm's Sustainable