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What is Sustainable growth rate?

Accounting Cost Accounting Financial Accounting Business Development
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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/11/20
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Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

The maximum growth rate that a firm can sustain without having to increase financial leverage.

Calculated as: ROE x (1 - dividend-payout ratio)

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