According to the sustainable growth model if a firm, Financial Management

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According to the sustainable growth model if a firm

According to the sustainable growth model, if a firm finances its assets with 75 percent debt and 25 percent equity, and retains $3 million in earnings in a given year, the firm can afford to borrow an additional __________ to maintain the desired mix of debt and equity. a. $9 million b. $5.25 million c. $2.25 million d. $1 million e. none of the above

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