A firm has Current Assets of $500, Fixed Assets of $2000, and Current Liabilities of $200 (all of these are part of operations). They also have Long Term Debt of $1500 and Equity of $800.Their Sales are $3000, COGS is $2100, Depreciation is $400, Interest Expense is $150, and Taxes are $105 (The Tax Rate is 30%) resulting in Net Income of $245. They paid out $200 in Dividends and have 500 shares outstanding at a price of $10 per share.

1.What is the companies Return on Net Operating Assets (Use these amounts as average amounts)?

a)15%b) 20%c) 25%d) 30%

2. What is their Price Earnings Ratio?

a)15b) 20c) 25d) 30

3. What is their Sustainable Growth Rate?

a)3.7%b) 4.5%c) 5.6%d) 6.9%