Q. Are the following statements true or false? Please explain why. 1. The only way a company can grow at a rate above its current sustainable growth rate is by issuing new stock. 2. The stock market is a ready source of new capital when a company is incurring heavy losses. 3. Share repurchases usually increase earnings per share. 4. Companies often buy back their stock because managers believe the shares are undervalued. 5. Only rapidly growing firms have growth management problems. 6. Increasing growth increases stock price.

Q. Are the following statements true or false? Please explain why. 1. The only way a company can grow at a rate above its current sustainable growth rate is by issuing new stock. 2. The stock market is a ready source of new capital when a company is incurring heavy losses. 3. Share repurchases usually increase earnings per share. 4. Companies often buy back their stock because managers believe the shares are undervalued. 5. Only rapidly growing firms have growth management problems. 6. Increasing growth increases stock price