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The assumption of rational self-interest does not rule out the possibility of concern for other individuals.
Net Fixed Assets
The value of a company's fixed assets minus depreciation, representing the actual value of the assets in use.
Financial Leverage
The use of borrowed money (debt) to amplify potential returns from an investment or project.
Sustainable Growth Rate
The maximum growth rate a company can achieve without having to increase its financial leverage or debt.
Internal Growth Rate
The maximum rate at which a company can expand its operations using only internally generated revenues, without resorting to external financing.
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