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You constructed a pro forma balance sheet for next year and found that external financing required was necessary (i.e., the company projected a financing deficit).
You constructed a pro forma balance sheet for next year and found that external financing required was necessary (i.e., the company projected a financing deficit). Which of the following statements are true? Select all that apply.
The company's actual growth rate is likely below its sustainable growth rate. A stock repurchase could address the projected deficit. A price increase might address the projected deficit. An increase in leverage could address the projected deficit. Paying dividends could address the projected deficit. Selling unproductive assets or divisions could address the projected deficit. The company may accept the deficit if it is expected to be temporary and cash reserves are sufficient
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