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.percentage 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 the firm's asset efficiency (I), leverage (II), and dividend policy (IV). Current assets per dollar of current liabilities (III) relate to liquidity, not directly to sustainable growth.

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