www . fin571tutor . com
FIN 571 Week 3 Connect Problems If the Garnett Corp . has a 15 percent ROE and a 25 percent payout ratio , what is its sustainable growth rate ? 1 . If the Hunter Corp . has an ROE of 15 and a payout ratio of 18 percent , what is its sustainable growth rate 2 . The most recent financial statements for Williamson , Inc ., are shown here Assets and costs are proportional to sales . Debt and equity are not . No dividends are paid . Next year ’ s sales are projected to be $ 8,418 . What is the external financing needed ? 3 . The maximum rate at which a firm can grow while maintaining a constant debt-equity ratio is best defined by its : 4 . Financial planning , when properly executed : 5 . Projected future financial statements are called : 6 . Which account is least apt to vary directly with sales ? 7 . Which one of the following depicts a correct relationship ? 8 . One of the primary weaknesses of many financial planning models is that they : 9 . In the financial planning model , the external financing needed ( EFN ) as shown on a pro forma balance sheet is equal to the changes in assets : 10 . The external funds needed ( EFN ) equation projects the addition to retained earnings as : 11 . Marcie ' s Mercantile wants to maintain its current dividend policy , which is a payout ratio of 35 percent . The firm does not want to increase its equity financing but is willing to maintain its current debt-equity ratio . Given these requirements , the maximum rate at which Marcie ' s can grow is equal to : 12 . The sustainable growth rate will be equivalent to the internal growth rate when , and only when ,: 13 . The minimum level of inventory that a firm wants to keep on hand at all times is referred to as : 14 . The operating cycle can be decreased by :