The sustainable growth rate of a firm is best described as the:

Corporate Finance

The sustainable growth rate of a firm is best described as the:

minimum growth rate achievable assuming a 100 percent retention ratio.
minimum growth rate achievable if the firm maintains a constant equity multiplier.
maximum growth rate achievable excluding external financing of any kind.
maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio.

Note

The sustainable growth rate of a firm is best described as the maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio.

Tags: Long-Term Financial Planning and Growth

Note

Leave a Reply Cancel reply