1. Paid-in surplus is classified as:

owners equity.

net working capital.

a current asset.

a cash expense.

long-term debt.

2. The sustainable growth rate is based on the premise that:

an additional dollar of debt will be acquired only if an additional dollar in equity shares is issued.

no additional equity will be added to the firm.

the debt-equity ratio will be held constant.

the dividend payout ratio will be zero.

the dividend payout ratio will increase at a steady rate.