FIN/571 WEEK 6 QUIZ (2015) CORRECT ANSWERS

FIN/ 571 Week 6 QUIZ

1-Planning models that are more sophisticated than the percent of sales method have

a- working capital accounts like inventory, accounts receivables, and accounts payables vary directly with sales.

b- fixed assets that do not always vary directly with sales.

c- all variable costs change directly with sales.

d- all of these are true

2- Firms that achieve higher growth rates without seeking external financing

a- have less equity and/or are able to generate high net income leading to a high ROE.

b- have a high plowback ratio.

c- are not highly leveraged

d- all of these are true.

3-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?

a- 6.4%

b- 32.9%

c- 30.3%

d- 26.5%

11 years ago

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FIN/571 WEEK 6 LEARNING TEAM REFLECTION (2015) A+ GUARANTEE

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