Define the term self-supporting growth rate. Would the self-supporting growth rate be effected by a change in the capital intensity ratio?
For a company to finance its activities, like production, sales and distribution, there must be finances. Company sources of finance may be external or internal. Internal sources include retained profits, while external sources include loans.
Answer and Explanation:
The self-supporting growth rate can be defined as the rate at which a company's sales increase without generating funds from external sources. The...
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fromChapter 15 / Lesson 1
In this lesson, we'll define capital and a firm's capital structure. We'll also discuss the costs associated with each component in the capital structure and learn about the concept of risk and return.