the index of sustainble growth indicates how much of the growth rate of sales can be sustained by
a-debt
b-net cash
c-assets
d-internally generated funds
Answers
⭐Debt⭐
is the correct option
..The sustainable growth rate is the rate of growth that a company can expect to see in the long term. Often referred to as G, the sustainable growth rate can be calculated by multiplying a company’s earnings retention rate by its return on equity. The growth rate can be calculated on a historical basis and averaged in order to determine the company’s average growth rate since its inception.
The sustainable growth rate is an indicator of what stage a company is in, during its life cycle. Understanding where a company is in its life cycle is important. The position often determines corporate finance objectives, such as which sources of financing to use, dividend payout policies, and overall competitive strategy.
The growth ratio can also be used by creditors to determine the likelihood of a company defaulting on its loans. A high growth rate may indicate the company is focusing on investing in R&D and NPV-positive projects, which may delay the repayment of debt. A high-growth-rate company is generally considered riskier, as it likely sees greater earnings volatility from period to period.
Answer:
option A
Explanation:
debt this is correct answer