Sal's Pizza has a dividend payout ratio of 10 percent. The firm does not want to issue additional equity shares

Which one of the following will cause the sustainable growth rate to equal to internal growth rate?    A.  dividend payout ratio greater than 1.0 B.  debt-equity ratio of 1.0 C.  retention ratio between 0.0 and 1.0 D.  equity multiplier of 1.0 E.  zero dividend payments

36.	The sustainable growth rate:    A.  assumes there is no external financing of any kind. B.  assumes no additional long-term debt is available. C.  assumes the debt-equity ratio is constant. D.  assumes the debt-equity ratio is 1.0. E.  assumes all income is retained by the firm.

37.

If a firm equates its pro forma sales growth to the rate of sustainable growth, and has positive net income and excess capacity, then the:    A.  maximum capacity level will have to increase at the same rate as sales growth. B.  total assets will have to increase at the same rate as sales growth. C.  debt-equity ratio will increase. D.  retained earnings will increase. E.  number of common shares outstanding will increase.

38.

Sal's Pizza has a dividend payout ratio of 10 percent. The firm does not want to issue additional equity shares but does want to maintain its current debt-equity ratio and its current dividend policy. The firm is profitable. Which one of the following defines the maximum rate at which this firm can grow?    A.  internal growth rate × (1 - 0.10) B.  sustainable growth rate × (1 - 0.10) C.  internal growth rate D.  sustainable growth rate E.  zero percent