A Firm's Sustainable Growth Rate Represents The

A firm's sustainable growth rate represents the:

A) Highest growth rate without decreasing the dividend
B) Highest growth rate without increasing financial leverage
C) Percentage change in sales times the profit margin
D) Possible growth without jeopardizing net working capital Internal growth rate = plowback ratio x ROE x (equity/assets)
) 06 = .41 x (.11 x asset turnover x 2) x .5
) 06 = .2 x (.2 asset turnover)
) 06/.04 = .04 asset turnover/.04