A firm has $1 million in current sales volume and an internal growth rate of 15%. If sales are expected to increase by $100,000, then:

Question

Quizplus · Accepted Answer

The internal growth rate of 15% implies that the firm can support a sales increase of up to $150,000 ($1 million * 15%) without needing external funding. Since the sales increase is only $100,000, which is within the internal growth capacity, external funding will not be required.

A Firm Has $1 Million in Current Sales Volume and an Internal