Other things equal,a firm can grow more rapidly without raising new capital if:

Name: Other things equal,a firm can grow more rapidly without raising new capital if:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If a firm pays out a small proportion of earnings, it retains more earnings, which can be reinvested in the business for growth without the need to raise new capital. This is known as internal financing. A low ROE, high ratio of debt to assets, or low profit margin may actually hinder a firm's ability to grow without raising new capital.

Other Things Equal,a Firm Can Grow More Rapidly Without Raising