Multiple Choice Question 55Planning models that are more sophisticated than the percent of sales method haveworking capital accounts like inventory accounts receivables and accounts payables vary directly with sales.all variable costs change directly with sales.fixed assets that do not always vary directly with sales.all of these are true.Multiple Choice Question 66Firms that achieve higher growth rates without seeking external financinghave a high plowback ratio.all of these are true.have less equity and/or are able to generate high net income leading to a high ROE.are not highly leveraged.Multiple Choice Question 85External financing needed: Triumph Company has total assets worth $6413228. Next year it expects a net income of $3145778 and will pay out 70 percent as dividends. If the firm wants to limit its external financing to $1 million what is the growth rate it can support?32.9%26.5%6.4%30.3%
