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The Sustainable Growth Rate Will Be Equivalent to the Internal

Question 106

Multiple Choice

The sustainable growth rate will be equivalent to the internal growth rate when,and only when:


A) a firm has no debt.
B) the growth rate is positive.
C) the plowback ratio is positive but less than 1.
D) a firm has a debt-equity ratio equal to 1.
E) the retention ratio is equal to 1.

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