Question
The sustainable growth rate of a firm is best described as the A. minimum growth rate achievable, assuming a 100 percent retention ratio. B. minimum
The sustainable growth rate of a firm is best described as the
A. minimum growth rate achievable, assuming a 100 percent retention ratio.
B. minimum growth rate achievable if the firm maintains a constant equity multiplier.
C. maximum growth rate achievable, assuming no changes to the capital structure of the firm.
D. maximum growth rate achievable with unlimited debt financing.
F. None of the options are correct.
Which of the following would increase a companys need for external financing, all else equal?
A. An increase in the dividend payout ratio
B. A decrease in sales growth
C. An increase in profit margin
D. A decrease in the collection period
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