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1. A venture's common equity account increased by $100,000 the past year and ended the year at $500,000. What was its sustainable sales growth rate?

a. 5%

b. 10%

c. 15%

d. 20%

e. 25%

2. A firm projects net income to be $500,000, intends to pay out $125,000 in dividends, and had $2 million of equity at the beginning of the year. The firm's sustainable growth rate is:

a. 5% b. 18.75% c. 6.25% d. 4.69% e. none of the above

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92714987

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