QUESTION 7 Which of the following statements is true? O A. Profit margin is calculated by dividing total assets by sales. B. Return on Equity rises if equity increases and net income remain constant. C. A 10% increase in cash will lead to a greater Cash Ratio D. The current ratio increases if the current liabilities increase QUESTION 8 Capital rationing implies that O A. the available capital will be allocated equally to all available projects B. funding needs is equal to funding resources O C. a firm has constraint to fund all of the available projects OD. None of the above