if a firm maintains a constant debt-equity ratio and does not use any new external equity financing, the firm can grow at a rate no greater than its _____.

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Answer 1

If a firm maintains a constant debt-equity ratio and does not use any new external equity financing, the firm can grow at a rate no greater than its sustainable growth rate (SGR).

What is Sustainable Growth Rate?

The sustainable growth rate is the maximum rate at which a firm can grow without having to raise new external equity financing. It is calculated as follows:

SGR = ROE × (1 - dividend payout ratio)

Where ROE is the return on equity and the dividend payout ratio is the percentage of earnings paid out as dividends.

If a firm maintains a constant debt-equity ratio, it means that it is not taking on any new debt. Therefore, the firm can only grow at a rate that is supported by its internal resources, which is the sustainable growth rate.

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Related Questions

walmart, target, and kmart are classified as full-line discount stores because they multiple choice compete with high-end department stores. offer a broad variety of merchandise, limited service, and low prices. offer the same products as specialty stores. serve as category specialists. specialize in attentive customer service.

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Walmart, Target, and Kmart are full-line discount stores because they offer a wide range of merchandise, limited service, and low prices. is the correct choice.

By providing good deep and even though narrow assortment of products and sales assistant knowledge and experience, different brands customize there own customer experience to the very particular customer groups.

They purchase to customers for personal license agreement.

The main difference between retailers and other suppliers in the supply chain seems to be that: -they very seldom start engaging in relationship marketing.

-They advertise to customer base for individual use. -They attract more buyers through advertising.

-They purchase to individuals, businesses, as well as the administration.

-They reach out to customers through marketing.

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what caused diann to confess her embezzlement to her employer? hiding the fraud was negatively affecting her health a colleague was starting to question her her husband threatened to divorce her both a and b

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The stress was causing her to be sick often because of which Diann confessed her embezzlement.

Embezzlement is a crime consisting of withholding property from one or more persons to whom it has been entrusted for the purpose of converting the property into custody or use for a particular purpose. .

Embezzlement is a form of financial fraud. For example, a lawyer could embezzle funds from a client's escrow account. Financial advisors can embezzle investors' funds. A husband or wife may embezzle funds from a jointly owned bank account with their spouse.

The term embezzlement is often used in informal speech to mean the theft of money, usually from an organization or business such as an employer.  

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Complete question:

What caused Diann to confess her embezzlement to her employer?

sludge corporation has two bonds outstanding, each with a face value of $2.15 million. bond a is a senior bond; bond b is subordinated. sludge has suffered a severe downturn in demand, and its assets are now worth only $3.30 million. if the company defaults, what payoff can the holders of bond b expect?

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The holders of subordinated Bond B would be paid after the senior bondholders, as per the terms of the bond. In case of a default, the senior bondholders will be paid first from the company's assets, and any remaining amount will be used to pay the subordinated bondholders.

Assuming the face value of each bond is $2.15 million, the company's total debt is $4.3 million. Given that the company's assets are now worth only $3.30 million, there is a shortfall of $1 million. If the senior bondholders claim their full $4.3 million, there will be nothing left to pay the subordinated bondholders.

Therefore, it is likely that the subordinated bondholders will not receive any payment in case of a default. Their claim is junior to the senior bondholders, and they are at a higher risk of loss. This risk is reflected in the higher yield and lower credit rating of subordinated bonds compared to senior bonds.

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a realtor assists client barbara avon in selling her home - the sale is completed on september 15. on september 17, the billing specialist at a records the transaction, prepares the bill and mails it to barbara. on september 29, the payment is collected. the necessary journal entry on september 29 to record the collection would include a debit to

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The necessary journal entry on September 29 to record the collection would include a debit to Cash and a credit to Accounts Receivable.

When the realtor assisted Barbara Avon in selling her home on September 15, a transaction occurred where Barbara owed the realtor a certain amount of money for the services rendered. At this point, no money has yet exchanged hands, and the transaction created an account receivable for the realtor.

On September 17, the billing specialist at the realtor's office prepared the bill and recorded it. This created a record of the amount owed by Barbara to the realtor. At this point, the realtor recorded a credit to Accounts Receivable, indicating that the realtor is owed money by Barbara.

On September 29, the payment for the services rendered was collected by the realtor. This means that the realtor received cash for the amount owed by Barbara. To record this transaction, the realtor would debit the Cash account for the amount received and credit the Accounts Receivable account to reduce the amount owed by Barbara.

The journal entry for this transaction would be,

Debit: Cash

Credit: Accounts Receivable

This journal entry reflects the fact that the realtor received cash and reduced the account receivable by the same amount.

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xyz inc. identified their main competing products, services and market segments. this is an example of a ?

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This is an illustration of the a competitive analysis in which xyz inc. identified the key products, services, and market segments that it competed in.

How is a competitive analysis conducted?

Researching key rivals as part of a competitor analysis is indeed a tactic used to learn more about their offerings, revenue streams, and marketing strategies. Conducting an competitive market study can help you implement more effective business strategies, fend off rivals, and gain market share, to name a few advantages.

How do you conduct a competitive analysis?

Feature, market share, price, marketing, differentiators, strength, weaknesses, geography, culture, and customer feedback should all be investigated in a competitive analysis of your rivals. This post is intended for both new and experienced owners of small businesses who want to research their rivals to enhance their goods and services.

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true or false: porter's five forces framework should be focused on a single country and should not be used for analyzing industries across national borders. true false

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The conception is Porter's five forces framework, used to guide business strategy to increase competitive advantage. It's false.

Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape every assiduity and helps determine an assiduity's sins.

Porter's Five Forces are trouble of new entrants, Bargaining power of buyers, Bargaining power of suppliers, trouble of new backups, and Competitive contest. This frame helps strategists understand what makes an assiduity profitable and provides perceptivity demanded to make strategic choices.

The ideal of Porter's Five Forces model is to assess the overall competitive geography of a particular business sector. Each of these five forces corresponds to a crucial element of request intensity.

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which characteristics are helpful for you to categorize consumers into customer segments? select all that apply.

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These are all qualities that might help you divide your target audience into different client categories.

What exactly does "consumer segmentation" entail?

Customer segmentation is the practice of grouping people who make up a customer base into separate groups based ona traits they have in common. With customized goods, services, and marketing tactics, this method makes it simpler to target particular customer demographics.

What exactly is behavioral segmentation?

In order to gain insight into how a person chooses to interact with your business, behavioral segmentation divides customers depending on the activities they've performed. Various criteria that can be applied for behavioral segmentation include the following examples:Pages seen,getting a demo,Added products to the cart,abandoning the cartand finishing a buy

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The following question is incompolerte the complete question is as follows:

Which characteristics are helpful for you to categorize consumers into customer segments? Choose all that apply.

Each consumer group feels strongly enough to pay for a different version of the product or service, tailored to their preferences.

The groups require relationships of different kinds.

The customer groups have a particular need which justifies the creation of a product to match this need.

There is a very clear difference in the level of profitability each group represents for the organization.

The group needs a separate distribution channel to be reached

which of the following financial statements is usually prepared first? multiple choice income statement. statement of retained earnings. income tax return. balance sheet.

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The financial statement among the given options, that is usually prepared first is income statement.

What is financial statement?

A financial statement is a combination of three main reports about a company. This includes the company's cash flow statement, income statement and balance sheet. All three together give a complete picture of the health of the company. This is a complete report on company health including cash flow, earnings and balance sheet. Financial statements determine whether a company must be able to repay loans, have cash flow to pay bills, and be able to purchase stock. It also shows where the company makes money and where the money goes.

Financial statements provide information about whether a company is profitable, whether it can sustain profits, and whether serious problems are looming, such as: A continuous decline in sales over time. Reading the financial statements will give you an overall picture of the state of the company and whether there are any indications of possible problems in the future.

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what is the primary purpose of this message? to apologize to a customer to direct a customer to customer service to refuse a refund to file a complaint

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The primary purpose of any message depends on the context, the target audience, and the specific content of the message.

If the message is from a company and is expressing regret for an error or issue that has occurred, then the primary purpose may be to apologize to a customer.

If the message is directing a customer to a specific department or person, then the primary purpose may be to direct a customer to customer service. If the message is denying a refund or return request, then the primary purpose may be to refuse a refund.

If the message is from an employee or customer and is expressing dissatisfaction with a product or service, then the primary purpose may be to file a complaint.

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