I need the week 3 fin 571 problem set questions answered. I have the attachment provided as well.

1 If the Hunter Corp. has an ROE of 19 and a payout ratio of 27 percent, what is its sustainable growth rate? (Do not calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate % 2 The most recent financial statements for Williamson, Inc., are shown here (assuming no income taxes): Income Statement Sale s $ Cost $ 20,500 Debt $ 2,420 $ Equi ty 4,880 s Net incom e Balance Sheet Asse 7,300 ts Tota $ l 20,500 Tot al 8,000 12,500 $ 20,500 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projec What is the external financing needed? (Do not round intermediate calculations and round your answer to the ne e.g., 32.) External financing needed $ 3 The external funds needed (EFN) equation projects the addition to retained earnings as: Projected sales (1 - d). PM Sales. PM Sales (1 - d). PM Projected sales (1 - d). PM Projected sales. 4 The maximum rate at which a firm can grow while maintaining a constant debt-equity ratio is best defined by its: internal rate of growth. average historical rate of growth. rate of return on assets. rate of return on equity. sustainable rate of growth. 5 The extended version of the percentage of sales method: assumes that all net income will be paid out in dividends to stockholders. assumes that all net income will be retained by the firm and offset by a reduction in debt. separates accounts that vary with sales from those that do not vary with sales. requires that all financial statement accounts change at the same rate. is based on a capital intensity ratio of 1.0. 6 In the financial planning model, the external financing needed (EFN) as shown on a pro forma balance sheet is equal to the changes in assets: minus the change in retained earnings. plus the changes in liabilities minus the changes in equity. minus the changes in both liabilities and equity. minus the changes in liabilities. plus the changes in both liabilities and equity. 7 The return on equity can be calculated as: Profit margin ROA. ROA (Net income / Total assets). ROA Equity multiplier. Profit margin ROA Total asset turnover. ROA Debt-equity ratio. 8 Which one of the following depicts a correct relationship? ROE = 1 - ROA Dividend payout ratio = 1 - Retention ratio Equity multiplier = 1 - Debt-equity ratio Total asset turnover = 1 + Capital intensity ratio ROA = ROE (1 + Debt-equity ratio) 9 The sustainable growth rate will be equivalent to the internal growth rate when, and only when,: the plowback ratio is positive but less than 1. a firm has no debt. the retention ratio is equal to 1. the growth rate is positive. a firm has a debt-equity ratio equal to 1. 10 Which account is least apt to vary directly with sales? accounts payable cost of goods sold notes payable accounts receivable inventory 11 Marcie's Mercantile wants to maintain its current dividend policy, which is a payout ratio of 35 percent. The firm does not want to increase its equity financing but is willing to maintain its current debt-equity ratio. Given these requirements, the maximum rate at which Marcie's can grow is equal to: the internal rate of growth. 65 percent of the sustainable rate of growth. 65 percent of the internal rate of growth. the sustainable rate of growth. 35 percent of the internal rate of growth. 12 Projected future financial statements are called: aggregated statements. reconciled statements. comparative statements. plug statements. pro forma statements. 13 The most common means of financing a temporary cash deficit is a: short-term secured bank loan. short-term issue of corporate bonds. long-term secured bank loan. short-term unsecured bank loan. long-term unsecured bank loan. 14 The cash cycle is defined as the time between: the arrival of inventory and cash collected from receivables. cash disbursements and cash collection for an item. selling a product and paying the supplier of that product. selling a product and collecting the accounts receivable. the sale of inventory and cash collection. 15 Given a fixed level of sales and a constant profit margin, an increase in the accounts payable period can result from: an increase in the cost of goods sold account value. an increase in the cash cycle. an increase in the ending accounts payable balance. a decrease in the operating cycle. a decrease in the average accounts payable balance. 16 All of the following can provide credit information about a customer except: credit reports. the customer's current payment history with the seller. the customer's financial statements. banks. the amount of goods the customer desires to purchase. 17 The credit period begins on the: order process date. shipping date. purchase order date. invoice date. shipping arrival date. 18 On September 1, a firm grants credit with terms of 2/10 net 30. The creditor: receives a discount of 2 percent when payment is made on September 1and pays a penalty of 10 percent if payment is made after October 1. must pay a penalty of 10 percent when payment is made later than 2 days after October 1. must pay a penalty of 2/10 of one percent when payment is made later than October 1. receives a discount of 2 percent when payment is made within 10 days. receives a discount of 2 percent when payment is made at least 10 days prior to October 1. 19 Selling goods and services on credit is: permissible only if your bank lends the money. never necessary unless customers cannot pay for the goods. a decision independent of customers. never a wise decision. an investment in a customer. 20 The operating cycle can be decreased by: paying accounts payable faster. collecting accounts receivable faster. discontinuing the discount given for early payment of an accounts receivable. decreasing the inventory turnover rate. increasing the accounts payable turnover rate. 21 Since the credit decision usually includes riskier customers, the decision should adjust for this by: discounting the net cash flows at a lower discount rate. decreasing the variable cost per unit. increasing the variable cost per unit. discounting the cash inflows at a higher discount rate. determining the probability that customers will not pay and reducing the expected cash flow. 22 When credit is granted to another firm this gives rise to a(n): trade receivable and is called a secured loan. credit due and is called an installment note. accounts receivable and is called a consumer credit. trade receivable and is called an installment note. accounts receivable and is called trade credit. 23 Brown's Market currently has an operating cycle of 76.8 days. It is planning some operational changes that are expected to decrease the accounts receivable period by 2.8 days and decrease the inventory period by 3.1 days. The accounts payable turnover rate is expected to increase from 9 to 11.5 times per year. If all of these changes are adopted, what will be the firm's new operating cycle? 73.4 days 63.3 days 68.4 days 57.9 days 70.9 days 24 A firm has an inventory turnover rate of 15.7, a receivables turnover rate of 20.2, and a payables turnover rate of 14.6. How long is the cash cycle? rev: 05_12_2016_QC_CS-51572 16.32 days 23.37 days 32.87 days 28.46 days 13.08 days 25 Jordan and Sons has an inventory period of 48.6 days, an accounts payable period of 36.2 days, and an accounts receivable period of 29.3 days. Management is considering offering a 5 percent discount if its credit customers pay for their purchases within 10 days. This discount is expected to reduce the receivables period by 17 days. If the discount is offered, the operating cycle will decrease from ___ days to ___ days. 28.3; 45.3 77.9; 94.9 77.9; 60.9 54.2; 37.2 28.3; 11.3 26 On average, D & M sells its inventory in 37 days, collects on its receivables in 3.4 days, and takes 35 days to pay for its purchases. What is the length of the firm's operating cycle? 41.6 days 40.4 days -1.4 days 5.4 days 33.6 days