What is meant by the term self-supporting growth rate


The following equation (AFN) is sometimes used to forecast financial requirement.

  • What key assumption do we make when using this equation?
  • Under what conditions might this assumption not hold true?
  • What is meant by the term "self-supporting growth rate?"
  • How is the rate related to the AFN equation, and how can that equation be used to calculate the self-supporting growth rate?

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Finance Basics: What is meant by the term self-supporting growth rate
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