1. How much external financing is needed for a 25% increase in sales if Lizard & Co. is currently operating at full capacity? Assume only costs and total assets increase with sales, with no new current liabilities, debt, or stock needed. Use Exhibit II.

a $0 M

b $38.0 M

c $402.0 M

d $440.0 M

2. What is the internal growth rate for Lizard & Co.? Use Exhibit II.

a 12.8205%

b 20.2247%

c 66.667%

d 85.4938%

3. What is Lizard & Co.'s sustainable growth rate? Use Exhibit II.

a 24.7525%

b 32.7273%

c 76.1905%

d 83.9746%

Use the Income Statement from Lizard \& Co. to complete the following three questions. Lizard \& Co. Income Statement (\$ in millions)