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please answer both 3. A firm earns a net profit to common shareholders of $2,345,000 on an average equity base for the year of $15,600,778.

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3. A firm earns a net profit to common shareholders of $2,345,000 on an average equity base for the year of $15,600,778. It pays out 33% of its profits as a dividend. Its sustainable growth rate (i.e. the rate it can grow sales & assets without increasing its leverage) is: * 12% 10% 23% 18% 4. A firm has a net profit margin of 5%; a total asset turnover of 2x and leverage (defined as total assets to equity) of 2x. According to the Dupont formula, it's return on equity is: * 12% 7% 20% 15%

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