This is a measure of how quickly a firm can increase its asset base over the next year without raising outside funds,
A) Internal rate of return
B) Internal growth rate
C) Retention rate
D) Dividend payout ratio

Question

Quizplus · Accepted Answer

The internal growth rate is a measure of how fast a firm can increase its assets without raising external capital. It's calculated using the firm's earnings retention rate and its return on assets. The other options are not directly related to the firm's ability to increase its asset base without external funding.

This Is a Measure of How Quickly a Firm Can