Question

The internal growth rate of a firm is best described as the: Multiple Choice Minimum growth rate achievable assuming a 100 percent retention ratio. Minimum growth rate achievable if the firm maintains a constant equity multiplier. Maximum growth rate achievable excluding external financing of any kind. Maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio. Maximum growth rate achievable with unlimited debt financing.

Answer 1

Answer:

The answer is: Maximum growth rate achievable excluding external financing of any kind.

Explanation:

The internal growth rate (IGR) of a company is the maximum level of business operations at which a company can function with its own resources, without obtaining external financing through issuing new debt or equity.

It measures the company's ability to increase sales and profit without any outside "help" (new debt or equity).