1.)Gujarat Corporation doubled its shareholders equity during the year 2014. Gujarat did not issue any new equity, repurchase any equity, or pay out any dividends during the year. What is Gujarats sustainable growth rate for 2014?

50%

100%

150%

200%

2.)Milano Corporation has experienced growth of 20% for each of the last 5 years. Over this 5-year period, Milanos return on equity has never exceeded 15%, its profit margin has held steady at 5%, and its total asset turnover has not changed. Over the 5-year period, Milano paid no dividends and issued no new equity. Based on this information, which of the following can you most likely infer about Milanos performance over the past 5 years?

Milanos leverage has decreased.

Milanos leverage has remained constant.

Milanos leverage has increased.

None of the above.

3.)You constructed a pro forma balance sheet for next year and found that external financing required was negative (i.e., the company projected a financing surplus). Which of the following options, all else equal, would NOT correct the projected imbalance?

A stock repurchase

A decrease in accounts payable

An increase in cash and marketable securities

An increase in the retention ratio