Which one of the following does not provide a "solution" to a projected growth rate in assets that exceeds the sustainable growth rate?

Question

Quizplus · Accepted Answer

Increasing the payout ratio actually reduces the amount of earnings retained in the business for growth, making it harder to support asset growth without seeking external financing. Sustainable growth is fundamentally about growing at a rate that can be supported by the company's earnings and financial structure without needing to increase financial leverage or issue new equity. Increasing the payout ratio means the company is distributing more of its earnings as dividends, leaving less to be reinvested in the business for growth.

Which One of the Following Does Not Provide a "Solution