return on assets and the return on equity
dividend payout ratio and leverage
retention rate and the return on equity
net profit margin and total sales
✅ The correct answer is C.
The sustainable growth rate of a firm can be calculated as the product of the retention rate and the return on equity. The sustainable growth rate (SGR) is the maximum rate of growth that a company can sustain without having to finance growth with additional equity or debt.
The sustainable growth rate of a firm can be calculated as the product of the retention rate and the return on equity. The sustainable growth rate (SGR) is the maximum rate of growth that a company can sustain without having to finance growth with additional equity or debt.