Corporate Finance Study Set 12

Business

Quiz 3 :

Financial Planning and Growth

Quiz 3 :

Financial Planning and Growth

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In the financial planning model, external funds needed (EFN) is equal to:
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B

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One key reason a long term financial plan is developed is because:
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C

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In estimating pro-forma statement of financial position, projected retained earnings are computed as present retained earnings plus:
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D

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Growth can be reconciled with the goal of maximizing firm value:
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The sustainable growth rate will be equivalent to the internal growth rate when:
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An example of an economic assumption would be:
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The most recent financial statements for REM Co. are shown below. img Assets and costs are proportional to sales. Debt is not. A dividend of $90 was paid, and REM wishes to maintain a constant payout to net income. Next year's sales are projected to be $480. What is external funds needed (EFN)?
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Financial planning models frequently assume that many variables are proportional to:
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A firm's planning model has assets and cash proportional to sales. The firm maintains a constant dividend payout ratio and a constant debt to equity ratio. Keying in on the asset to sales ratio, the firm's sustainable growth is _________ and ________ the asset to sales ratio.
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Sustainable growth is defined as the level of growth than an entity can:
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The process of combining smaller projects into a large budget for planning purposes is called:
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A firm has a fixed debt-to-equity ratio and dividend policy. Assets and net income are proportional to sales, and new equity will not be issued. Which of the following statements is most correct?
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If accounts receivable are $45,000 and are directly proportional to total sales, the forecast accounts receivable for next year's 5% increase in sales to $125,000 would be:
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The most recent financial statements for Matrix Chip are shown below. img img Assets, costs, and current liabilities are proportional to sales. Matrix Chip maintains a constant 50% dividend payout. No external financing is possible. What is the maximum percentage increase in sales that can be sustained?
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If a firm holds the dividend payout, the debt to equity ratio and outstanding shares constant while maintaining income and assets proportional to sales, the plug variable is:
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The external funds needed (EFN) equation projects the addition to retained earnings as:
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If forecasted net income is $3,600.00 and the expected dividend is $1,098 and the tax rate is 34%, what is the retention ratio?
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Projected future financial statements are called:
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The addition to retained earnings for the financial planning period is equal to:
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Financial planning is concerned with the basic policy elements of:
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