1. As the growth rate ________, ________ financing will not be enough to fund new projects

1. Increases, External
2. Increases, Internal
3. Decreases, External
4. Decreases, Internal

2. An increase in which of the following will increase a firm's sustainable growth rate?

1. Profit margin
2. Dividend payout ratio
3. Capital structure
4. Both A and C
5. Both B and C

3. The percent of sales method for determining pro-forma financial statements:

1. Assumes a constant retention ratio (dividend policy)
2. Assumes that the marginal tax rate is constant

3. Depends on a projection of sales for coming periods

4. All of the above.

Question (2)

The following table presents the Balance sheet of automobile company at 31/12/2019

Assets	Value	Liabilities	value
Cash	?	Account payable	10000
Accounts Receivable	15000	accruals	5000
Inventory	30000	Long term debt	?
Fixed assets	150000	-	-
-	-	Common shares	120000
		Retained earnings	50000
Total assets	215000	Total equity and liabilities	215000