Which of the following statements is false: Multiple Choice The sustainable growth rate is the maximum rate of growth for a firm that can be maintained without increasing the firm’s financial leverage. Most corporate bonds involve balloon payments. The connection between sales growth and external financing for the typical growth firm shows the need for new assets grows at a much faster rate than the addition to retained earnings, so internal equity provided by retained earnings rapidly disappears and the firm then needs to resort to external financing. One drawback with financial planning models is that they rely on accounting relationships and not financial relationships that focus on the size, timing, and risk of cash flows. Exchange members on the NYSE must purchase trading licenses that entitle the member to buy and sell securities on the floor of the exchange.