How does company assess its sustainable growth rate

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Reference no: EM132613837

1. How does a company assess its sustainable growth rate (SGR)?

- How does a firm use the SGR in decision making?

- What are the consequences for a firm that grows a higher rate than its SGR?

- What are the consequences for a firm that grows at a lower rate than its SGR?

2. Consider the following ideas to include in your answer:

- Which variables are used in calculating the SGR?

- How does a firm use the SGR in choosing a financing option?

- How does a firm finance a growth that is higher than its SGR?

- What is the opportunity cost for a firm that grows at a lower rate than its SGR?

Reference no: EM132613837

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