The internal growth rate measures how quickly a firm can increase its asset base over the next year without raising outside funds.

Name: The internal growth rate measures how quickly a firm can increase its asset base over the next year without raising outside funds.
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Question

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The internal growth rate is a measure of the maximum growth a firm can achieve using only its retained earnings and assets. It does not include the use of outside funding sources such as loans or equity financing.

The Internal Growth Rate Measures How Quickly a Firm Can