1. The internal rate of growth is based on the assumption that:
the dividend amount is held constant.
no external funding of any type is obtained.
the return on equity is held constant.
the only additional outside capital obtained is long-term debt.
the debt-equity ratio is held constant.
2. Merrimack Company has current sales of $490,000, current liabilities of $80,000, and net working capital of $25,000. The projected sales for next year are $550,000. All net working capital accounts change directly with sales. What is the projected value of current assets for next year?
$127,271.43
$124,788.44
$120,296.75
$117,857.14
$114,536.20