1) Which of the following is commonly forecasted as a percent of sales?

1) Which of the following is commonly forecasted as a percent of sales?A. Common StockB. Gross ProfitC. Long-Term DebtD. Revolving Credit2) External funding needs are computed as: A. Projected total assets - (projected liabilities + projected net worth) B. Projected total assets - (actual liabilities + net worth) C. Projected current assets - (projected current liabilities + net worth) D. None of the above 3) The item that roughly divides "real" from "financial" activities on an income statement is: A. EBIT B Interest Expense C. SG&A Expense D. None of the above 4) The Static Tradeoff theory of capital structure implies that firms with higher business risk have should have lower leverage. True False5) The Pecking Order Theory of capital structure implies a unique optimum capital structure. True False