The Sustainable Growth Rate (SGR)

question 16

Multiple Choice

The sustainable growth rate (SGR)

• A) is a function of the plowback ratio and the ROE.
• B) the rate of growth that the company can sustain without selling additional shares of equity.
• C) helps management determine whether they can avoid issuing new equity.
• D) All of the above are true of the SGR.

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Definitions:

Middle Age

typically refers to the period of life between young adulthood and old age, often considered to run from approximately 45 to 65 years of age.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, often measured as an indicator of heart health.

Sexual-Reproductive System

The organs and structures in the body involved in reproduction and the functions related to it, including the genitals and associated glands and hormones.

Miscarriage

The spontaneous loss of a pregnancy before the fetus can survive outside the womb, typically defined as before 20 weeks of gestation.