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Hello, can you help me answer question 1. This is for fundamentals of corporste finance, thank you. growth rate be higher or lower thail th

Hello, can you help me answer question 1. This is for fundamentals of corporste finance, thank you. image text in transcribed
growth rate be higher or lower thail th reinvested earnings assets Internal growth rate finance.yahou.com, and compare Wendy's International (WEN) and McDonald's nternal growth rates and sustainable growth rates by using recent annual data. (Note rate is calculated by using the earnings reinvested in the firm in the I. Log on to finance.yahou.com, and compare Wendy's Internati (MCD) internal growth rates a that the internal growth current year, not total retained earnings from the balance sheet.) Yahoo also shows the earnings growth that analysts are forecasting for each firm. Are the forecasts supported by the past per- formance of each firm? 2. Go to finance.yahoo.com. Find the (annual) balance sheet and income statement for American Electric Power (AEP). Suppose the company plans on 4% revenue growth over the next year. Under a percentage of sales approach, where assets and costs (except for depreciation) are pro- portional to sales, find AEP's required external funding over the next year. Assume that it will maintain the same dividend payout ratio as in the current year and that its average tax rate will be the same next year as it was in the most recent year. 3. Log on to hiz.yahoo.com, and click on Industries. The industry browser provides some finan- cial ratios for different sectors. What is the rustainabie rate of growth for each sector if the firms maintain their plow back ratio and renm eeav? (Note: Although Yahoo does not report the plowback ratio, you can wo i o to thP and dividend yield.) Do you think that those industries with a high retu on eqaity can continue to earn such a high return on new investment

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