Kizspy | Question: 34
(Choose 1 answer)
Which of the following statements is NOT true?
A. The internal growth rate (IGR) is defined as the maximum growth rate that a firm can achieve without external funding.
B. The higher the retained earnings generated by a firm, the higher the growth without using external funding.
C. Given the same level of retained earnings, a firm that has the higher amount of total assets has a higher
growth possibility without using external funding.
D. Having a low debt-to-equity ratio may allow firms to achieve higher growth rates without seeking external funding.
