Which one of the following statements about the sustainable growth rate (SGR) is NOT true?
A) The higher a firm's ROE, the higher the SGR.
B) The higher the plowback ratio, the larger the proportion of net income retained in the firm and the greater the firm's SGR.
C) Both a and b are true
D) None of the above.
Answer: C
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.