Question
Currently, FGH Company has a market cap of $200,000 and a Debt/Equity ratio of 1/3. If the company wants to grow without changing its capital
Currently, FGH Company has a market cap of $200,000 and a Debt/Equity ratio of 1/3. If the company wants to grow without changing its capital structure, it must issue an additional $6,000 in new debt.
What is the company's internal growth rate?
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The internal growth rate is the maximum rate at which a company can grow without issuing new equity or changing its debttoequity ratio We can calculat...
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
