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Examveda

Which of the following represents the rate at which a company can grow from internal sources?

A. return on assets

B. sustainable growth rate

C. adjusted EPS

D. return on equity

Answer: Option B

Solution(By Examveda Team)

Sustainable growth rate represents the rate at which a company can grow from internal sources. 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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