Difference between company sales growth and profit growth

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-Why is there a difference between the company's sales growth and its profit growth? Specifically, how is the difference likely to influence borrowing needs? To what is the difference due? How should Triple A address this difference? Comment upon the firm's payout ratio relative to its sales growth. Is this appropriate? Why or why no?

-Subject is Financial Management for MBA. Question is from 'Triple A Office Mart' Case study

Reference no: EM133070773

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