The internal rate of growth is based on the assumption that:

the dividend amount is held constant.

no external funding of any type is obtained.

the return on equity is held constant.

the only additional outside capital obtained is long$-$term debt.

the debt$-$equity ratio is held constant.

Question $7$

Financial planning, when properly executed:

helps ensure that adequate financing is in place to support the desired level of growth.

ensures that the primary goals of senior management are fully achieved.

reduces the necessity of daily management oversight of the business operations.

ignores the normal restraints encountered by a firm.

eliminates the need to plan more than one year in advance.