1. Rennaisance's has sales of $598,000, a tax rate of 34 percent, a dividend payout ratio of 50 percent, and a profit margin of 8 percent. What is the addition to retained earnings?

		$21,477.50
		$22,837.18
		$23,751.60
		$23,920.00
		$24,652.44

2. A firm has total assets of $260,000, long-term debt of $90,000, stockholders' equity of $120,000, and current liabilities of $50,000. The dividend payout ratio is 40 percent and the profit margin is 7 percent. Assume all assets and current liabilities change spontaneously with sales and the firm is currently operating at full capacity. What is the external financing need if the current sales of $300,000 are projected to increase by 10 percent?

		$7,140
		$14,210
		$8,495
		$13,200
		$4,280

3. Brandford Co. has net income of $320,000, total equity of $700,000, a dividend payout ratio of 60 percent, and an equity multiplier of 1.20. What is the internal rate of growth?

		16.41%
		17.98%
		18.33%
		18.78%
		19.15%

4. The CFO of Organic Foodstuff Ltd., has created the firm s pro forma balance sheet for the next fiscal year. Sales are projected to grow by 10 percent to $400 million. Current assets, fixed assets, and short-term debt are 20 percent, 75 percent, and 15 percent of sales, respectively. Organic Foodstuff pays out 30 percent of its net income in dividends. The company currently has $105 million of long-term debt and $46 million in common stock par value. The profit margin is 9 percent. Based on the CFO s sales growth forecast, how much does Organic Foodstuff need in external funds for the upcoming fiscal year? (Hint: you need to construct the balance sheet this year and determine the accumulated retained earnings before constructing the proforma balance sheets to determine the EFN)

		$3,612,767
		$3,890,909
		$4,102,360
		$4,210,880
		$4,420,807