Which of the following will increase sustainable growth?
A) Buy back existing stock.
B) Decrease debt.
C) Increase profit margin.
D) Increase dividend payout ratio.

Question

Quizplus · Accepted Answer

Increasing the profit margin directly contributes to sustainable growth by enhancing the company's ability to reinvest in its operations, innovate, and expand without necessarily increasing its financial leverage or reducing equity through stock buybacks or higher dividend payouts.

Which of the Following Will Increase Sustainable Growth