he need for external financing:
Multiple Choice
will limit growth if unfunded.
is unaffected by the dividend payout ratio.
must be funded by long-term debt.
ignores any changes in retained earnings.
considers only the required increase in fixed assets.
12. The maximum rate of growth a corporation can achieve can be increased by:
Multiple Choice
avoiding new external equity financing.
increasing the corporate tax rate.
increasing the retention ratio.
increasing the dividend payout ratio.
increasing the sales forecast.
13. The internal growth rate of a firm is best described as the ______ growth rate achievable ______.
Multiple Choice
minimum; assuming a retention ratio of 100 percent
minimum; if the firm maintains a constant equity multiplier
maximum; excluding external financing of any kind
maximum; excluding any external equity financing, while maintaining a constant debt-equity ratio
maximum; with unlimited debt financing
14. The sustainable growth rate of a firm is best described as the ______ growth rate achievable ______.
Multiple Choice
minimum; assuming a 100 percent retention ratio
minimum; if the firm maintains a constant equity multiplier
maximum; excluding external financing of any kind
maximum; excluding any external equity financing, while maintaining a constant debt-equity ratio
maximum; with unlimited debt financing
