Companies that achieve higher growth rates without seeking external financing

Question

Quizplus · Accepted Answer

Companies with less equity and/or the ability to generate high profits tend to have a higher return on equity (ROE), which can lead to higher growth rates without the need for external financing. A low plowback ratio (A) means that the company is retaining less earnings to reinvest in growth, while being highly leveraged (C) can increase financial risk and make it more difficult to secure financing for growth.

Companies That Achieve Higher Growth Rates Without Seeking External Financing