B. I and III only C. II and IV only D. I, II, and IV only E. II, III, and IV only 5. Activities of a firm which require the spending of cash are known as: A. sources of cash. B. uses of cash. C. cash collections. D. cash receipts. E. cash on hand. 6. The formula which breaks down the return on equity into three component parts is referred to as which one of the following? A. equity equation B. profitability determinant C. SIC formula D. Du Pont identity E. equity performance formula 7. Which one of the following terms is defined as dividends paid expressed percentage of net income? as a A. dividend retention ratio B. dividend yield C. dividend payout ratio D. dividend portion E. dividend section 8. You are getting ready to prepare pro forma statements for your business. Which one of the following are you most apt to estimate first you begin this process? as A. fixed assets B. current expenses C. sales forecast D. projected net income E. external financing need 9. Interest earned on both the initial principal and the interest reinvested from prior periods is called: A. free interest