1. A firm has an ROA of 10%, a dividend payout ratio of 40%, an Equity Multiplier of 1.60, what is the Sustainable Growth Rate?
9.04%
6.84%
9.60%
10.62%
2. If full capacity sales levels of existing equipment are $2,000,000 and the firm is currently selling 70% of capacity, what percent can sales grow before new Fixed Assets are required?
42.86%
25.00%
70.00%
30.00%
3. Current Assets = $900; Fixed Assets = $2,500; Accounts Payable = $300; Most recent year Sales of $1,500, PM% = 15%, Dividend Payout of 20%. If next year sales are projected to grow to $1,800, what is the External Financing Needed (EFN)?
$360.80
$566.00
$404.00
$548.00