Question $6$

$1pts$

$JJ$ firm has a return on equity of $15$ percent, a return on assets of $10$ percent, and a $70$ percent dividend payout ratio. The maximum growth rate only using internal financing is $$ and that using external financing and maintaining debt ratio is $$

$3\mathrm{.}09\%$;$4\mathrm{.}71\%$

$11\mathrm{.}73\%$;$7\mathrm{.}53\%$

$7\mathrm{.}53\%$;$11\mathrm{.}73\%$

$4\mathrm{.}71\%$;$3\mathrm{.}09\%$

Question $7$

$1pts$

Which one of the following actions by a financial manager creates an agency problem?

$q,$

refusing to borrow money when doing so will create losses for the firm

agreeing to pay bonuses based on the market value of the company's stock

agreeing to expand the company at the expense of stockholders' value

refusing to lower selling prices if doing so will reduce the net profits