1.OscarButtery, Inc. reported a profit margin of 14.2%, totalasset turnover ratio of 1.5times, debt-to-equity ratio of 0.625times, net income of $775,000, and dividends paid to commonstockholders of $321,625. The firm has no preferred stockoutstanding. Whatis the firm's internal growth rate?

A.more than 13.4%but less than 14.6%

B.more than 12.2% but less than 13.4%

C.more than 11.0% but less than 12.2%

D.more than 9.8% but less than 11.0%

E.less than 9.8%

2.In 2017, ForsythFlatbread, Inc. had net income of $386,750,sales of $2.35 million, debt of $875,000, debt ratio of0.35 andadividend payout ratio of 45%. What is the sustainable growthratefor ForsythFlatbread?

A.more than 15.2% but less than 16.4%

B.morethan 14.0% but less than 15.2%

C.more than 12.8% but less than 14.0%

D.more than 11.6% but less than 12.8%

E.less than 11.6%3.

3. A firm reported the following information for 2017: debtratio = 68%, capital intensity ratio = 0.625 times, profit margin =12.8%, and dividend payout ratio = 72%. What is the sustainablegrowth rate for the firm?

A.more than 31.0%

B.more than 27.8% but less than 31.0%

C.more than 24.6% but less than 27.8%

D.more than 21.4% but less than 24.6%

E.less than 21.4%

4.Which of the following statements is correct?(x)The DuPontanalysis calculates ROE as equal to the equation: Profit Margintimes Total Asset Turnover times Equity Multiplier(y)If a companyhas an ROE = 10.5%, equity multiplier = 3, and profit margin of 5%,then the firm’s total asset turnover ratio is equal to 0.70.(z)If acompany has an ROE = 15%,total asset turnover ratio = 0.75, equitymultiplier = 2.4,then the firm’s profit margin is more than7.8%.

A.(x), (y) and (z)B. (x) and (y) only C.(x) and (z) onlyD.(y)and (z) onlyE.(x) only