A firm can achieve a higher growth rate (within limits) without raising external capital if it Decreases its debt-to-asset ratio.
External capital is all capital raised outside the firm. It can be either financial Debt from lenders or Equity from new or existing Shareholders.
An economic growth rate is the percentage change in the value of all of the goods and services produced in a nation during a specific period of time, as compared to an earlier period.
The sustainable growth rate (SGR) is the maximum rate of growth that a company can sustain without raising additional equity or taking on new debt.
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