Question: Identify the statement that is incorrect: All else equal, a decrease in dividend payout will increase internally generated equity and increase the sustainable growth rate.

Identify the statement that is incorrect:

All else equal, a decrease in dividend payout will increase internally generated equity and increase the sustainable growth rate.

A major problem with the payback rule is coming up with the right cutoff period.

Profitability index is the present value of future cash flows less the initial cost.

Fixed costs are effectively sunk costs.

Truth-in-lending laws in the United States require that lenders disclose an APR on virtually all consumer loans.

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