Question
Busters Market has a dividend payout ratio of 30 percent. The firm does not want to issue additional equity shares nor increase its debt at
| Busters Market has a dividend payout ratio of 30 percent. The firm does not want to issue additional equity shares nor increase its debt at this time. The firm is profitable. Which one of the following defines the maximum rate at which this firm can currently grow? |
| Internal growth rate (1 - .30). |
| Sustainable growth rate (1 - .30). |
| Internal growth rate. |
| Sustainable growth rate. |
| Zero percent. |
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Financial And Insurance Formulas
Authors: Tomas Cipra
2010th Edition
3790829013, 978-3790829013
