Examlex

Solved

What Are the Three Types of Nonstore Retailing, and What

question 78

Essay

What are the three types of nonstore retailing, and what are some examples of each?


Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its equity and while maintaining its existing debt-equity ratio.

Debt-Equity Ratio

A calculation to determine a business's leverage by dividing its liabilities by the equity of its stockholders.

External Equity Financing

This term refers to the process through which a company raises capital by selling its shares to external investors, outside the existing shareholders or company insiders.

Internal Growth Rate

The maximum growth rate a firm can achieve without external financing, based on reinvestment of its own earnings.

Related Questions