Suppose a percentage of sales model forecasts that sales will grow by 20% next year. If costs of goods sold (COGS) are proportionate at 70% of sales, then COGS will ___ next year. (Exam 1)

Question 3 options:

	grow by 70%
	grow by 20%
	not change
	grow to 90% of sales

Question 4 (1 point)

If a firm with a total asset of $3 million recently added $100,000 to retained earnings after a dividend payment of $150,000, then its internal growth rate is: (Exam 1)

Question 4 options:

	5.00%.
	3.33%.
	8.33%.
	1.67%.