Asked by
gurmeet takhar
on Dec 09, 2024
Verified
When projecting growth, the point where the required increase in assets is equal to the addition to retained earnings is called the:
A) Equilibrium growth rate.
B) External growth rate.
C) Internal growth rate.
D) Sustainable growth rate.
E) Pro forma growth rate.
Growth Rate
The rate at which a company's earnings or revenue increases over a specified period, typically expressed as a percentage.
Retained Earnings
The portion of a company's profit that is held back and not paid out as dividends, often used for reinvestment.
- Pinpoint the contributors to sustainable and internal growth rates.
Verified Answer
CH
Learning Objectives
- Pinpoint the contributors to sustainable and internal growth rates.