1. Planners often recommend entering a market for "strategic" reasons because the:
A) Company is facing too much competition in its original market
B) Company may have valuable follow-on investments in the new market
C) Immediate investment has a positive net present value
D) Manager has a personal interest in a particular market
2. The sustainable rate of growth assumes the:
A) Debt-equity ratio is held constant
B) Market to book ratio increases
C) Dividend payout ratio increases
D) External debt remains constant