Market has dividend payout ratio

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Reference no: EM131319780

Buster’s Market has a dividend payout ratio of 30 percent. The firm does not want to issue additional equity shares nor increase its debt at this time. The firm is profitable. Which one of the following defines the maximum rate at which this firm can currently grow?

Internal growth rate × (1 - .30).

Sustainable growth rate × (1 - .30).

Internal growth rate.

Sustainable growth rate.

Zero percent.

Reference no: EM131319780

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