All of the following are ways in which a firm can increase its growth rate of equity earnings without any external financing except A) Decreasing its dividend payments B) Increasing its retention ratio C) Increasing its return on equity (ROE) D) Increasing its return on assets (ROA) E) All of the above will increase the firm's growth rate without external financing

Question

Quizplus · Accepted Answer

All of the choices will increase the firm's growth rate without external financing. Decreasing dividend payments and increasing the retention ratio will increase the amount of earnings retained by the firm, which can be used to finance growth. Increasing ROE and ROA will increase the firm's profitability, which will also lead to increased growth.

All of the Following Are Ways in Which a Firm