1. Paid-in surplus is classified as:
owners’ equity.
net working capital.
a current asset.
a cash expense.
long-term debt.
2. The sustainable growth rate is based on the premise that:
an additional dollar of debt will be acquired only if an additional dollar in equity shares is issued.
no additional equity will be added to the firm.
the debt-equity ratio will be held constant.
the dividend payout ratio will be zero.
the dividend payout ratio will increase at a steady rate.