Financial St. Analysis

vivi_martinez95

450-500 words 

APA Format

Question Text


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?


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?

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