Sal's Pizza has a dividend payout ratio of 10 percent.The firm does not want to issue additional equity shares but does want to maintain its current debt-equity ratio and its current dividend policy.The firm is profitable.Which one of the following defines the maximum rate at which this firm can grow?
A) internal growth rate × (1 - 0.10)
B) sustainable growth rate × (1 - 0.10)
C) internal growth rate
D) sustainable growth rate
E) zero percent
Correct Answer:
Verified
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A) will limit growth
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A)assumes there is no
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