For many firms, cash and inventory needs may grow less than proportionally with sales. When we recognize

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For many firms, cash and inventory needs may grow less than proportionally with sales. When we recognize this fact, will the firm's internal growth rate be higher or lower than the level predicted by the following formula?

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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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Question Posted: Aug 18, 2017 02:20 PM

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For many firms, cash and inventory needs may grow less than proportionally with sales. When we recognize

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reinvested earnings Internal growth rate net assets

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If assets rise less than pr...View the full answer

Fundamentals of Corporate Finance

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