1. A firm can increase its sustainable rate of growth by decreasing its:

profit margin.

dividends.

total asset turnover.

target debt-equity ratio.

equity multiplier.

2.Financial leverage:

increases as the net working capital increases.

is equal to the market value of a firm divided by the firm's book value.

is inversely related to the level of debt.

is the ratio of a firm's revenues to its fixed expenses.

increases the potential return to the stockholders.

3. Shareholders' equity is equal to:

total assets plus total liabilities.

net fixed assets minus total liabilities.

net fixed assets minus long-term debt plus net working capital.

net working capital plus total assets.

total assets minus net working capital.