A firm can achieve a higher growth rate without raising external capital if it:

Question

Quizplus · Accepted Answer

A low debt-to-asset ratio means that the firm is relying less on external financing, allowing it to retain more earnings to reinvest in the business, which can lead to higher growth rates without the need to raise external capital. The other options (high dividend payout ratio, low ROE, and low profit margin) do not necessarily support higher growth rates without external capital.

A Firm Can Achieve a Higher Growth Rate Without Raising