Next $3$ Qs Use the following information

Stone Roses Co$.$

Balance Sheet for Dec. $31,1999$

Cash

$$50$

Accounts payable

$$100$

Inventory

$$150$

Notes payable

$100$

Fixed assets

$$600$

Long$-$term debt

$350$

Equity

$250$

Total assets

$$800$

Total liabilities & equity

$$800$

Income statement for $1999$

Sales

$$800$

Costs

$600$

EBT

$$200$

Taxes $(34\%)$

$68$

Net income

$$132$

Suppose the firm retains $28\%$ of earnings, while assets and costs

maintain a constant percentage of sales. If the firm is producing at full

capacity, what is the internal growth rate?

$1\mathrm{.}9\%$

$4\mathrm{.}8\%$

$10\mathrm{.}1\%$

$13\mathrm{.}5\%$

$17\mathrm{.}3\%$

Question $11$

$1$

Point

Suppose that assets and costs maintain a constant ratio to sales. The maintain a constant percentage of sales. The firm retains $30\%$ of earnings. If the firm is producing at full what is the maximum growth rate, assuming no equity sales, that will maintain a constant debt$-$equity ratio?

$5\mathrm{.}2\%$

$15\mathrm{.}6\%$

$18\mathrm{.}8\%$

$21\%$

$29\mathrm{.}2\%$

Question $12$

$1$

Point

Suppose the firm wishes to maintain a constant debt$-$equity ratio, retains $60\%$ of net income, and raises no new equity. Assets and costs maintain a constant ratio to sales. What is the maximum increase in sales the firm can achieve?

$88$

$249$

$371$

$429$

$580$

Details & Information

Assessment due date

$9/25/24,2$:$00$ PM $($EDT$)$

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