Actual sales growth above a firms sustainable growth rate


1. Actual sales growth above a firm’s sustainable growth rate can be managed by:

a. Selling the business.

b. Increasing financial leverage.

c. Increasing the dividend payout ratio

d. Reducing prices

2. By creating a public market for the company’s shares, an ____ will provide desired liquidity to existing owners as well as supplying necessary funding.

a. Efficient Market

b. Financial Instrument

c. Call Provision

d. IPO

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Financial Management: Actual sales growth above a firms sustainable growth rate
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