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Which of the following are determinants of a firms sustainable rate of growth? I. Amount of...

Which of the following are determinants of a firms sustainable rate of growth?

I. Amount of sales generated from each dollar invested in assets

II. Amount of debt per dollar of equity

III. Amount of current assets per dollar of current liabilities

IV. Percentage of net income distributed as dividends

A. I and III only.

B. II and IV only.

C. I, II and IV only.

D. II, III, and IV only

E. I, II,III and IV

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Answer #1

Correct answer is option : C. I, II and IV only.

Below are determinants of firms sustainable growth rate-

I. Amount of sales generated from each dollar invested in assets
II. Amount of debt per dollar of equity

IV. Percentage of net income distributed as dividends

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