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 debt-equity 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: 16. Selling goods and services on credit is: 17. The three components of credit policy are: 18. Given a fixed level of sales and a constant profit margin, an increase in the accounts payable period can result from: 19. On September 1, a firm grants credit with terms of 2 / 10 net 30. The creditor: 20. The credit period begins on the: 21. When credit is granted to another firm this gives rise to a( n): 22. Since the credit decision usually includes riskier customers, the decision should adjust for this by: 23. Jordan and Sons has an inventory period of 48.6 days, an accounts payable period of 36.2 days, and an accounts receivable period of 29.3 days. Management is considering offering a 5 percent discount if its credit customers pay for their purchases within 10 days. This discount is expected to reduce the receivables period by 17 days. If the discount is offered, the operating cycle will decrease from ___ days to ___ days. 24. Brown’ s Market currently has an operating cycle of 76.8 days. It is planning some operational changes that are expected to decrease the