Question: Explain the difference between a firms sustainable growth rate and its optimal growth rate. In what circumstances is a firms optimal growth rate likely to

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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The optimal growth rate is the rate that maximizes shareholder wealth Another way to say this is ... View full answer

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