Busıness Fınance I Deneme Sınavı Sorusu #856212

Which of the following causes a decrease in sustainable growth rate?


An increase in return on equity

An increase in dividends

An increase in net income

A decrease in average shareholder equity

A decrease in dividend payout ratio


Yanıt Açıklaması:

sustainable growth rate=return on equity*(1-dividend payout ratio)

where return on equity=net income/average shareholder equity

and

dividend payout ratio=dividends/net income.

Thus an increase in return on equity, an increase in net income, a decrease in average shareholder equity or a decrease in dividend payout ratio causes to an increase in sustainable growth rate. However an increase in dividends results in a decrease in susainable growth rate.

Yorumlar
  • 0 Yorum