In: Finance
1. The overall goal of the financial manager is to:
a. minimize total costs.
b. maximize net income.
c. maximize earnings per share.
d. maximize shareholder wealth.
2. Sustainable Growth Rate You have located the following information on Rock Company: debt ratio = 49.5%, capital intensity ratio = 2.63 times, profit margin = 27%, and dividend payout ratio = 44%. What is the sustainable growth rate for Rock? (Do not round intermediate steps.)
1. 3.92%
2. 12.85%
3. 15.12%
4. 27%