Quiz Ch 18 – Assessing Self-Sustaining Asset Growth
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What is the term for the rate at which a firm’s assets can expand without the need for external financing?
What is the term for the rate at which a firm’s assets can expand without the need for external financing?
What is crucial to ascertain the statistical significance of portfolio performance?
What assumptions are made when determining the sustainable rate of growth?
What must serve as the equilibrium factor in a scenario where a company commits to a dividend payout and defines the level of debt it’s willing to issue?
What element should be used to maintain this balance in the financial plan of a growing company that adheres to a fixed dividend policy and wishes to avoid new shareholders?
What principle forms the basis for calculating the geometric average rate of return?
To whom do the advantages from the interest tax shield accrue under the assumption that bonds are sold at a fair price?
How is the income realized by the bondholder expressed in the context of paying one dollar of operating income as interest?
How can a firm attain a greater growth rate without the need for additional external capital, given specific factors like the dividend payout ratio, ROE, debt-to-asset ratio, and profit margin?
What is the formula for calculating the operating cycle?