Internal growth rate(redirected from Internal Growth Rates)
Internal growth rate
Maximum rate a firm can expand without outside sources of funding. Growth generated by cash flows retained by company.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Internal Growth Rate
The maximum amount of growth a company can sustain without needing to borrow money, make a new issue of stocks, or otherwise obtain a new source of financing. One calculates the internal growth rate by taking the company's retained earnings and dividing by its total assets.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved