Assume that the firm is operating at 90 percent of capacity. What is the capital intensity ratio at full-capacity sales? a. 1.31 TA b. 1.67 d. 2.07 c. 1.86 TS Assume that the profit margin and dividend payout ratio are constant. What is the projected total amount of retained earnings if sales are projected to increase by 10 percent? a. $2,300 c. $2,430 d. $2,643 b. $2,343 Assume that the profit margin is constant and that the firm is operating at 80 percent of capacity. What is the amount of net income at the full-capacity level of sales? a. $460 b. $468 c. $480 d. $488 Assume the firm has a constant dividend payout ratio and profit margin. The firm does not want any additional external financing of any kind. Given these conditions, what is the maximum rate at which the firm can grow if they are currently at full capacity? Internal growth a. 2.74 percent b. 2.83 percent c. 2.91 percent d. 2.98 percent Current Income Statement Net sales $5,200 3,360 Less: Cost of goods sold 950 Less: Depreciation EBIT Less: Interest paid Taxable Income Less: Taxes Net income Dividends 890 290 $ 600 210 $ 390 $117 Cash A Accounts rec. CA Inventory CA Total Net fixed assets Total assets $ 720 550 860 $2.130 7,540 $9.670 L Current Balance Sheet Accounts payable Long-term debt CF+C Common stock Retained earnings S Total liab. & equity $ 910 3,630 3,000 C 2,130 S $9.670