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Which of the following is NOT likely to be a prudent financing policy for a rapidly growing business? Multiple Choice a. Adopt a modest dividend

Which of the following is NOT likely to be a prudent financing policy for a rapidly growing business?

Multiple Choice

a. Adopt a modest dividend payout policy that enables the company to finance most of its growth internally.

b. Maintain a conservative leverage ratio to ensure continuous access to financial markets.

c. Borrow funds rather than limit growth, thereby limiting growth only as a last resort.

d. None of the options are correct.

e. If external financing is necessary, use debt to the point it does not affect financial flexibility.

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