Consider That You Are a fiNance Manager, and One of Your

question 165

Essay

Consider that you are a finance manager, and one of your junior staff wanted an explanation of the
term internal growth rate. Provide a definition that conveys what the term means from a finance
perspective.

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Definitions:

Cash Collected

The total amount of money received by a company from its various activities, such as sales, services, or borrowings.

Customers

Individuals or entities that purchase goods or services from a company, contributing to the company's revenue.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Investing Activities

Financial actions associated with the purchase and sale of long-term assets and other investments not considered cash equivalents.