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Which of the Following Statements Is Correct for a Firm

Question 61

Multiple Choice

Which of the following statements is correct for a firm that has a sustainable growth rate that exceeds its projected growth rate in assets?


A) The projected growth in assets will be restricted.
B) The internal growth rate will provide the remaining assets.
C) The firm's ROE must increase.
D) The debt-equity ratio will increase unless equity is issued.

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