How much a firm can grow
Sustainable Growth Rate: How much a firm can grow A company requires capital to finance the growth. This can be achieved by using internally generated funds, or by issuing new equity shares. But, it has been observed that companies show reluctance in issuing new equity to raise capital (Firer, 1995, p-57). Without recourse to new equity capital, there is a limit to the growth of the company. The company can grow without opting for external equity finance by altering its present financial structure.
Sustainable Growth Rate and its Importance
There exists an important relation between growth in sales, and increase in assets and equity. Rapid ...
