A firm has an asset turnover ratio of 2.0. Its plowback ratio is 50%, and it is
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A firm has an asset turnover ratio of 2.0. Its plowback ratio is 50%, and it is all-equity-financed. If the profit margin of the firm is 6%, what is the maximum possible growth rate that can be sustained without external financing?
Asset TurnoverAsset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-1259722615
9th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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