Please answer all questions below, thank you!

16. Which one of the following terms is applied to the financial planning method which uses the projected sales level as the basis for determining changes in balance sheet and income statement account values?

A. percentage of sales method

B. sales dilution method C. sales reconciliation method

D. common-size method

E. trend method

17. Which one of the following correctly defines the retention ratio?

A. one plus the dividend payout ratio B. addition to retained earnings divided by net income C. addition to retained earnings divided by dividends paid

D. net income minus additions to retained earnings

E. net income minus cash dividends

18. The internal growth rate of a firm is best described as the: A. minimum growth rate achievable assuming a 100 percent retention ratio. B. minimum growth rate achievable if the firm maintains a constant equity multiplier. C. maximum growth rate achievable excluding external financing of any kind. D.maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio. E. maximum growth rate achievable with unlimited debt financing.

19. A firm is currently operating at full capacity. Net working capital, costs, and all assets vary directly with sales. The firm does not wish to obtain any additional equity financing. The dividend payout ratio is constant at 40 percent. If the firm has a positive external financing need, that need will be met by: A. accounts payable.

B. long-term debt.

C. fixed assets. D. retained earnings.

E. common stock.