FIN 571 Course Great Wisdom / tutorialrank.com FIN 571 Course Great Wisdom / tutorialrank.com | Page 34

Assets and costs are proportional to sales. Debt and equity are not. No
dividends are paid. Next year’s sales are projected to be $8,418. What
is the external financing needed?
3.The maximum rate at which a firm can grow while maintaining a
constant debt-equity ratio is best defined by its:
4.Financial planning, when properly executed:
5.Projected future financial statements are called:
6.Which account is least apt to vary directly with sales?
7.Which one of the following depicts a correct relationship?
8.One of the primary weaknesses of many financial planning models
is that they:
9.In the financial planning model, the external financing needed
(EFN) as shown on a pro forma balance sheet is equal to the changes
in assets:
10.The external funds needed (EFN) equation projects the addition to
retained earnings as:
11.Marcie's Mercantile wants to maintain its current dividend policy,
which is a payout ratio of 35 percent. The firm does not want to
increase its equity financing but is willing to maintain its current debtequity ratio. Given these requirements, the maximum rate at which
Marcie's can grow is equal to:
12.The sustainable growth rate will be equivalent to the internal
growth rate when, and only when,:
13.The minimum level of inventory that a firm wants to keep on hand
at all times is referred to as:
14.The operating cycle can be decreased by:
15.The cash cycle is defined as the time between: