The increase in dividends that can be supported and maintained by a company's earnings is the:

Question

Quizplus · Accepted Answer

The sustainable growth rate represents the maximum rate at which a company can grow without requiring external financing, while still maintaining its current financial policies (including dividend payments). This growth rate is directly tied to the company's earnings, and therefore represents the increase in dividends that can be supported and maintained by those earnings. Therefore, option C is the best choice.

The Increase in Dividends That Can Be Supported and Maintained