John wants to determine the amount of fixed assets required to support each dollar of sales for his company. To enable himself to complete this task, he needs to collect information on the value(s) of his company's __________________.

I. current sales

II. current payout ratio

III. current amount of current assets

IV. current level of current liabilities

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Your mother has just purchased a General Motor bond. The bond pays $120 once every year in interest. The par value of the bond is $1,000 and the coupon rate is 12%. We call this $120 the __________________.

Multiple Choice

• semi-annual coupon

• discount

• face value

• yield

• annual coupon

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When we estimate 3M's internal growth rate, we are in fact finding ________________________

Multiple Choice

• its maximum growth rate achievable with unlimited debt financing.

• its maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio.

• its minimum growth rate achievable if the firm maintains a constant equity multiplier.

• its minimum growth rate achievable assuming a 100 percent retention ratio.

• none of the given options is correct.