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The sustainable growth rate of a firm can be calculated as...

This question belongs to Commerce Financial Management
Financial Management
?

The sustainable growth rate of a firm can be calculated as the product of the_________.

Answer & Solution
Correct Answer: Option C
The sustainable growth rate of a firm can be calculated as the product of the retention rate and the return on equity. The sustainable growth rate (SGR) is the maximum rate of growth that a company can sustain without having to finance growth with additional equity or debt.
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