1) A firm has a retention ratio of 40 percent and a sustainable growth rate of 10 percent. The asset turnover ratio is 0.85 and the assets-to-equity ratio (using beginning-of-period equity) is 1.80. What is the profit margin?

	3.29 percent
	5.39 percent
	6.95 percent
	11.17 percent
	16.34 percent

2) Norfolk Transport, Inc. had equity of $150,000 at the beginning of the year. At the end of the year, the company had total assets of $195,000. During the year, the company sold no new equity. Net income for the year was $63,000 and dividends were $23,000. What is the sustainable growth rate?

	10.32 percent
	12.79 percent
	26.67 percent
	32.01 percent
	None of the above