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Which of the following correctly defines the sustainable growth rate? The maximum possible growth rate for a firm that maintains a constant debt ratio and

Which of the following correctly defines the sustainable growth rate?

The maximum possible growth rate for a firm that maintains a constant debt ratio and doesn't sell stock.

The maximum possible growth rate for a firm that relies only on internal financing.

The maximum possible growth rate management thinks the firm can sustain.

The maximum possible growth rate based on market trends.

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