5. Planners have determined that sales will increase by 205 next yea and that the profit margin will remain at 10% of sales. Which of th following statements is correct? A. Profit will grow by 20%. B. The profit margin will grow by 10%. C. Profit will grow proportionately faster than sales. D. 10% of the increase in sales will become net income. E. All of the above. 6. Which of the following statements is correct concerning the internal growth rate? A. It is maximized when the payout ratio equals zero. B. It is maximized when the plowback ratio equals zero. C. It cannot be less than the sustainable growth rate. D. It decreascs as total assets decrease. E. None of the above. 7. The effect of a change in sales on working capital will be seen is which section of a financial plan? A. Output section. B. Pro forma financial statements. C. Planning model. D. Sources and uses of funds. E. None of the above. 8. A firm's internal growth rate is A. The rate of growth that can be maintained withont reorting te additional external sources of capital. B. The ratio of retained earnings to asets. C. The maxiruum growth rate without external souroes of pew capital. D. Determined by the plowback ratio, ROE, and the ratbo of equity to assets. E. All of the above