Currently, FGH Company has a market cap of $200,000 and a Debt/Equity ratio of 1/3. If the

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Currently, FGH Company has a market cap of $200,000 and a Debt/Equity ratio of 1/3. If the company wants to grow without changing its capital structure, it must issue an additional $6,000 in new debt.

What is the company's internal growth rate?

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Entrepreneurial Finance

ISBN: 978-1305968356

6th edition

Authors: J. Chris Leach, Ronald W. Melicher

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Posted Date: Jul 25, 2023 04:28 AM

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Currently, FGH Company has a market cap of $200,000 and a Debt/Equity ratio of 1/3. If the

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The internal growth rate is the maximum rate at which a company can grow without issuing new equity or changing its debttoequity ratio We can calculat... View the full answer

Entrepreneurial Finance

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