Q195
Which of the following represents the rate at which a company can grow from internal sources?
A.
return on assets
B.
sustainable growth rate
AnswerC.
adjusted EPS
D.
return on equity
Answer: Option B
Solution
Answer: Option B
Solution:
Sustainable growth rate represents the rate at which a company can grow from internal sources. The sustainable growth rate (SGR) is the maximum rate of growth that a company can sustain without having to finance growth with additional equity or debt.