Which one of the following is correct when a firm's pro forma statements project a net income of $5,000 and an external financing requirement of $2,000?
A) Dividends cannot exceed $3,000.
B) Total assets cannot grow by more than $3,000.
C) Retained earnings cannot grow by more than $5,000.
D) The internal growth rate is 60%.
Correct Answer:
Verified
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