Sustainable growth considers the return on equity and the portion of funds reinvested in the business.

Name: Sustainable growth considers the return on equity and the portion of funds reinvested in the business.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Sustainable growth is a measure of how much a firm can grow its sales, earnings, and dividends without borrowing more money. It takes into account the return on equity (ROE) and the retention ratio (the portion of earnings not paid out as dividends, which are reinvested in the business).

Sustainable Growth Considers the Return on Equity and the Portion