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25 June, 11:27

The sustainable growth rate is based on the premise that:

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  1. 25 June, 11:44
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    It is based on the premise that the sustainable growth rate is that the debt - equity ratio will be held constant. The sustainable growth rate is the maximum rate of growth of the firm that sustain without having to increase financial leverage for outside financing. It is measure of how large the firm and how quickly it can row without borrowing more money.
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