Multiple Choice Question
Multiple Choice Question 55
Planning models that are more sophisticated than the percent of sales method have
| [removed] | working capital accounts like inventory, accounts receivables, and accounts payables vary directly with sales. |
| [removed] | all variable costs change directly with sales. |
| [removed] | fixed assets that do not always vary directly with sales. |
| [removed] | all of these are true. |
| Multiple Choice Question 66 |
Firms that achieve higher growth rates without seeking external financing
| [removed] | have a high plowback ratio. |
| [removed] | all of these are true. |
| [removed] | have less equity and/or are able to generate high net income leading to a high ROE. |
| [removed] | are not highly leveraged. |
| Multiple Choice Question 85 |
External financing needed: Triumph Company has total assets worth $6,413,228. Next year it expects a net income of $3,145,778 and will pay out 70 percent as dividends. If the firm wants to limit its external financing to $1 million, what is the growth rate it can support?
| [removed] | 32.9% |
| [removed] | 26.5% |
| [removed] | 6.4% |
| [removed] | 30.3% |