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A venture has a sustainable growth rate of 15% per year. The entrepreneur wants to target a growth rate of 25%. To achieve this in
A venture has a sustainable growth rate of 15% per year. The entrepreneur wants to target a growth rate of 25%. To achieve this in a way that would not change the ratios comprising its sustainable growth rate, the entrepreneur must.
A. Add 10% of new equity each year. B. Add 10% new debt each year. C. Maintain its profitability and dividend payout ratio. D. All of the above
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