Question: Question 4 3 What decision does the financial manager fac if e projected sales growth rate exceeds the sustainable growth r e GR ) ?
Question
What decision does the financial manager fac if e projected sales
growth rate exceeds the sustainable growth r e GR
The firm will issue debt only and ahoid raising an newuity
The firm will reduce its growth rate to match the inter nal growth rate
The financial manager will need to decide whether to increase financial
leverage by issuing all debt or consider issuing so me equity to balance the
funding needs
The firm will pay down its liabilities to reduce financial leverage
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