If the Projected Growth Rate Is Smaller Than the Firm's

question 28

Multiple Choice

If the projected growth rate is smaller than the firm's sustainable growth rate:

• A) it should increase its projected growth rate.
• B) the firm will be required to decrease its plowback ratio.
• C) its debt-equity ratio will decrease.
• D)the firm will be required to increase borrowing.

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Definitions:

Weaknesses

Aspects of an organization or individual that are detrimental to achieving its objectives and can be internal vulnerabilities or areas needing improvement.

Opportunities

Opportunities refer to favorable situations or conditions that can lead to the success of an activity, project, or business venture.

Threats

Potential dangers or negative impacts that could harm an entity or hinder its plans.

SWOT Analysis

a strategic planning tool used to identify and assess Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.