Which of the following statements is incorrect: Multiple Choice You can compute the sustainable growth rate for a firm using return on assets, equity multiplier and the retention ratio. Combining scenario analysis and sensitivity analysis results in a crude form of simulation analysis. All else equal, increasing the ROE will increase the sustainable growth rate. A primary drawback in both the dividend growth model and security market line approach, is we essentially rely on the past to predict the future . The level of sales that results in a zero NPV is the cash breakeven point. PrevQuestion 25 of 30 Total25 of 30