Explain the difference between a firms sustainable growth rate and its optimal growth rate. In what circumstances

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Explain the difference between a firm’s sustainable growth rate and its optimal growth rate. In what circumstances is a firm’s optimal growth rate likely to exceed its sustainable rate, and under what conditions would you expect the opposite to be true?
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Introduction to Corporate Finance

ISBN: 978-0324657937

2nd edition

Authors: Scott B. Smart, William L Megginson

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