Question

Which of the following will increase the sustainable rate of growth for a firm?A. Decreasing the profit marginB. Increasing the dividend payout ratioC. Decreasing the asset turnoverD. Increasing the target debt-equity ratio

Answer 1

D. Increasing the target debt-equity ratio

Step-by-step explanation:

• The sustainable rate SGR is a major rate of growth and development of the company or the social enterprise or company can sustain without having financial growth without increasing the financial leverage.

• It's an important lever to business success in terms of growing its important variables for success: market share, market growth, the marketing expense to the sales ratio.