At the internal growth rate, the external financing needed is calculated as

Select one:

a. EFN = p(S)R + [(A p(S)R) x g].

b. EFN = A(g) p(S)R x (1 + g) p(S)R x (1 + g)[D/E].

c. EFN = (ROE x R) / [1 (ROE x R)].

d. EFN = 0.

e. none of the above.

2.

In a pro-forma statement of financial position, the plug variable is

Select one:

a. used to stop leakage in the model.

b. used to bring the financial statement into balance.

c. usually a financing item.

d. a and b.

e. b and c.

3.

Sustainable growth is defined as the level of growth that a firm can maintain if

Select one:

a. it stays in the same business.

b. the net working capital is increased.

c. sales grow at the rate of inflation.

d. it does not change the accounting relationships or capital structure.

e. it does not go bankrupt.

4.

The most recent financial statements for REM Co. are shown below.

Statement of Comprehensive Income

Sales	$400
Costs	200
Taxes	50
Net income	$150

Statement of Financial Position

Assets	$1200	Debt	$ 600
		Equity	600
Total	$1200	Total	$1200

Assets and costs are proportional to sales. Debt is not. A dividend of $90 was paid, and REM wishes to maintain a constant dividend payout. Next year's sales are projected to be $480. What is the external financing needed (EFN)?

Select one:

a. $60

b. $132

c. $144

d. $168

e. $240