Finance $(1)$

Section: G$3$

Note: This assessment contains two questions

Question $(1)$: Choose the correct answer and highlight in another colour.

$1-$ As the growth rate

financing will not be enough to fund new

projects

A$.$ Increases, External

B$.$ Increases, Internal

C$.$ Decreases, External

D$.$ Decreases, Internal

$2-$ An increase in which of the following will increase a firm's sustainable growth

rate?

A$.$ Profit margin

B$.$ Dividend payout ratio

C$.$ Capital structure

D$.$ Both A and C

E$.$ Both B and C

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

A$.$ Assumes a constant retention ratio $($dividend policy$)$

B$.$ Assumes that the marginal tax rate is constant

C$.$ Depends on a projection of sales for coming periods

D$.$ All of the above.