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