A decrease in which one of the following will increase a firm's sustainable rate of growth?
A)net income
B)dividend payout ratio
C)total assets
D)retention ratio
E)earnings per share

Question

Quizplus · Accepted Answer

A decrease in the dividend payout ratio means the firm retains more earnings, which can be reinvested into the business, thus increasing the sustainable growth rate.

A Decrease in Which One of the Following Will Increase