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6. The internal growth rate is calculated as: A. [(ROA)(R)]/[1 - (ROA)(R)]. B. [(ROE)(R)][[1 - (ROE)(R)]. C. [(ROA)(R)]/[1 - (ROE)(R)]. D. [(ROE)(R)]/[1 + (ROA)(R)]. E.

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6. The internal growth rate is calculated as: A. [(ROA)(R)]/[1 - (ROA)(R)]. B. [(ROE)(R)][[1 - (ROE)(R)]. C. [(ROA)(R)]/[1 - (ROE)(R)]. D. [(ROE)(R)]/[1 + (ROA)(R)]. E. [(ROA)(R)]4[1 + (ROA)(R)]. 7. A Vancouver firm has a payout ratio of 40 percent and a sustainable growth rate of 8.5%. The capital intensity ratio is 1.1 and the debt-equity ratio is .5. What is the profit margin? A. 5.4% B. 7.9% C. 9.6 % D. 11.9% E. 14.4% 8. George Consulting, Inc. is currently operating at 90 percent of capacity. The profit margin and the dividend payout ratio are projected to remain constant. Sales are projected to increase by 8% next year. What is the projected addition to retained earnings for next year given the current retained earnings stand at $415.50 mn? A. $149.58 B. $299.16 C. $448.74 D. $598.32 E. $650.24 9. Calculate the payout ratio from the following available information : EBIT $150,000; interest expense $16,000; tax rate 30%; dividends paid $40,000. A. 35.55% B. 36.43% C. 63.57% D. 65.45% E. 68.23%

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