1. An analytical tool that asks managers to consider the impact on financial performance by altering one key assumption or variable at a time, while holding all others constant, is
a) scenario analysis.
b) cash budgeting.
c) sensitivity analysis.
2. Fake Company Zeta ended its most recent fiscal year with net income of $130,890 on revenues of $2,617,800. Each of its 15,000 shares outstanding received a dividend of $2.62. Total assets are $800,000. What is the company's internal growth rate?
a) about 16.4%
b) about 12.9%
c) about 4.9%