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Which of the following is correct? As long as a firm does not pay out 100% of its earnings, the firm's annual profit that is

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Which of the following is correct? As long as a firm does not pay out 100% of its earnings, the firm's annual profit that is retained in the business (i.e., the addition to retained earnings) is another source of funds for a firm's expansion. The maximum growth rate that a firm can achieve with no access to external capital is called the firm's selfsupporting growth rate. It can be calculated by using the AFN equation with AFN equal to zero and solving for g. All of the above are correct None of the above is correct

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