the questions with solutions and working out Question 1 A company has a profit margin of 14.6% and a retention ratio of 60%. Last year's sales were $400 and total assets were $1 000. The desired debt / equity ratio is 75%. What is the sustainable growth rate? Select one: a.6.5% b.6.4% c.5.0% d.5.6% Question 2 All other things being equal, a firm's capital intensity ratio will decrease if: Select one: a.net income increase b.accounts payable decrease c.tax payable decrease d.sales increase Question 3 A ltd has a total debt / equity ratio of 0.5, a profit margin of 3 percent, a dividend payout of 40 percent and a capital intensity ratio of 1. What is the sustainable growth rate? Select one: a.2.77% b.2.47% c.2.17% d.Cannot be determined Question 4 A ltd company earns net income of $45 000 in a given year, and its retained earnings increase $30 000 for that same year. The retention ratio is: Select one: a.75% b.50% c.66.67% d.150%