Under Which One of the Following Capital Structures Will a Firm's

question 59

Multiple Choice

Under which one of the following capital structures will a firm's internal growth rate exceed its sustainable growth rate?

• A) Total debt-to-asset ratio equals 35%.
• B) Equity-to-debt ratio equals 60%.
• C) Equity-to-debt ratio equals 125%.
• D) None of the options.

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