The sustainable rate of growth assumes that a profitable firm with a payout ratio of .4:
A) Acquires no additional external debt of any kind.
B) Increases its current liabilities but not its long-term debt.
C) Maintains a constant debt-equity ratio.
D) Acquires no external financing of any kind.
E) Acquires additional equity financing but no debt financing.
Correct Answer:
Verified
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