1. Which type(s) of loan can be repaid with annuity payments?
Pure discount loan
Both pure discount and interest-only loans
Amortized loan
Both interest-only and amortized loans
Interest-only loan
2. A firm has an ROE of 27.5% and an ROA of 12%. What is the internal growth rate if the firm has a 40% dividend payout ratio?
a. 8.46%
b. 7.76%
c. 8.81%
d. 5.71%
e. 4.71%