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If a firm equates its pro forma sales growth to the rate of sustainable growth, and has positive net income and excess capacity then the:

If a firm equates its pro forma sales growth to the rate of sustainable growth, and has positive net income and excess capacity then the:

a. Maximum Capacity level will have to increase at the same rate as sales growth

b. Total assets will have to increase at the same rate as sales growth

c. Debt-equity ratio will increase

d. Retained earnings will increase

e. Number of commom share outstanding will increase

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