Holding all other variables constant, which of the following will increase the sustainable growth rate? An increase in ____.

Question

Quizplus · Accepted Answer

B) An increase in return on sales will increase profitability, allowing for more retained earnings to be reinvested into the company to fuel growth.
C) An increase in total asset turnover means the company is generating more revenue per dollar of assets, which also increases profitability and the amount of retained earnings available for growth.

Holding All Other Variables Constant, Which of the Following Will