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The sustainable growth rate: (a) assumes the debt-equity ratio is variable, (b) assumes that 100% of all income is retained by the firm, (c) is
The sustainable growth rate: (a) assumes the debt-equity ratio is variable, (b) assumes that 100% of all income is retained by the firm, (c) is based on receiving additional external debt and equity financing, (d) is normally higher than the internal growth rate, or (e) assumes there is no external financing of any kind.
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