Question #134
Reading: Reading 20 Discounted Dividend Valuation
PDF File: Reading 20 Discounted Dividend Valuation.pdf
Page: 54
Status: Unattempted
Correct Answer: A
Question
Sustainable growth is the rate that earnings can grow:
Answer Choices:
A. without additional purchase of equipment
B. with the current assets
C. indefinitely without altering the firm's capital structure
Explanation
Sustainable growth is the rate of earnings growth that can be maintained indefinitely
without the addition of new equity capital.