13. Drazi, Inc.'s profit margin is 15%, total asset turnover is 1.2, equity multiplier is 1.6, and dividend payout ratio is 35%. The firm has no plan to raise funds externally, only counting on its own internal funding (i.c., retained earnings) to support growth. What maximum growth rate can Drazi achieve? Hint: According to the "Key Equations" on your textbook Appendix, ROA - Profit Margin x Total Asset Turnover. a. 6.72%. b. 7.07% c. 11.21% d. 13.25%. e. 23.03% 14. Abbai, Inc. has the same profit margin, same total asset turnover, same equity multiplier, and same dividend payout ratio as the aforementioned Drazi, Inc. (see 013). To support its future growth, the firm plans to raise some debt from creditors while keeping its debt-equity ratio stable. What maximum growth rate can Abbai achieve? 6.72%. b. 8.99% 11.21%. d. 13.25%. 23.03% a. c. e. 15. You borrow $30,000 student loan. If you pay $600 per month and you are charged 0.5% monthly interest on the balance, how long will it take you to pay off the debt? a. 45 months b. 50 months. c. 55 months. d. 58 months. e. You can never pay off the debt like this. 16. Assume today your child is just 6 years old, and the total cost of a college education will reach $200,000 when your child turns 18 and enters college. You presently have $20,000 to invest. What annual rate of return must you earn on your investment to cover the cost of your child's college education? a. 20.15%. b. 21.15%. c. 22.15% d. 23.15% e. 24.15% 17. From 1965 to 2020, Warren Buffet's Berkshire Hathaway investment company has gained compounded return of 20.0% per year (Data Source: https://berkshirehathaway.com/letters/2020ltr.pdf). Meanwhile, during all those years, a 3 Londo Mollari has been investing $500 per year into Berkshire Hathaway. How much would be Londo's investment value by the end of 2020? a. below $10,000,000. b. between $10,000,000 and $30,000,000. c. between $30,000,000 and $50,000,000. d. between $50,000,000 and $70,000,000. more than 70,000,000. e