The Sustainable Growth Rate of a Firm Is Best Described

question 49

Multiple Choice

The sustainable growth rate of a firm is best described as the:

• A)minimum growth rate achievable assuming a 100 percent retention ratio.
• B)minimum growth rate achievable if the firm maintains a constant equity multiplier.
• C)maximum growth rate achievable excluding external financing of any kind.
• D)maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio.
• E)maximum growth rate achievable with unlimited debt financing.

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Definitions:

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior or for a chain of reasoning.

Mojave Desert

A vast desert region in the southwestern United States known for its unique ecological characteristics and biodiversity, including Joshua trees.

Population

A collection of the same species members who live and reproduce together in a specific location.