Question
Please use the following statements to help you answer the questions. I) Calculate the sustainable growth rate for ABC for the year 2013. **Remember the
Please use the following statements to help you answer the questions.
I) Calculate the sustainable growth rate for ABC for the year 2013.
**Remember the ending equity for the prior year is same as the beginning equity for the current year.**
Possible Choices: 4.32%; 4.97%; 5.25%; 5.67%; or 6.45%
II) Calculate the return on equity and the retention ratio for the 2013.
Possible Choices: 10.56% and 50%; 24.91% and 25.87%; 15.65% and 32.29%; 67.28% and 32.87; or 42.20% and 75.37%
III) Calculate the spontaneous source of financing for ABC for the year 2013.
**Remember the definition of spontaneous source of financing.**
Possible Choices: $8,000; $9,000; $10,000; $11,000; or $12,000
Any advice would be helpful! -- Thank you and have a wonderful day!
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