Bear vorp, is creating pro torma tinancial statements tor the upcoming year.

Management assumes that all variables $($i$.$e$.,$ revenue, costs, income, assets, etc.$)$

will grow by a uniform percentage. Despite this, a discrepancy arises where debt

plus equity does not sum to total assets under a $0\%$ payout ratio. The CFO proposes

several potential strategies, but the team is divided on which approach would be

most effective in balancing the financials while maintaining corporate strategy

alignment. Aonsider the following options:

i$.$ Pay a dividend such that the addition to retained earnings equals the

assumed growth in equity.

ii$.$ Increase their assumed retention ratio while retiring outstanding debt.

iii. Increase their assumed payout ratio until the books balance.

iv$.$ Retain all earnings and retire outstanding debt.

v$.$ Increase their assumed retention ratio.

ii$.$ only

i$,$ iii, and $v$

i and $v$ only

None of the answer provided are correct

i$.$ only