The decision to issue additional shares of stock is an example of which one of the following?
-Working capital management.
-Net working capital decision.
-Capital budgeting.
-Controller's duties.
-Capital structure decision.
Answer: Capital structure decision
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Financial Management
- All else constant, which one of the following will increase the internal rate of growth?
- Blasco Industries is currently at full-capacity sales. Which one of the following is limiting sales to this level?
- A firm's external financing need is financed by which of the following?
- Which one of the following will increase the maximum rate of growth a corporation can achieve?
- The plowback ratio is:
- Which one of the following capital intensity ratios indicates the smallest need for fixed assets per dollar of sales?
- A firm is currently operating at full capacity. Net working capital, costs, and all assets vary directly with sales. The firm does not wish to obtain any additional equity financing. The dividend payout ratio is constant at 40 percent. If the firm has a positive external financing need, that need will be met by:
- A pro forma statement indicates that both sales and fixed assets are projected to increase by 7 percent over their current levels. Given this, you can safely assume that the firm:
- When constructing a pro forma statement, net working capital generally:
- Which one of the following is correct in relation to pro forma statements?
- When utilizing the percentage of sales approach, managers:
- Which one of the following statements is correct?
- You are getting ready to prepare pro forma statements for your business. Which one of the following are you most apt to estimate first as you begin this process?
- Financial planning:
- You are developing a financial plan for a corporation. Which of the following questions will be considered as you develop this plan?
- The sustainable growth rate of a firm is best described as the:
- The internal growth rate of a firm is best described as the:
- Which one of the following ratios identifies the amount of total assets a firm needs in order to generate $1 in sales?
- Which one of the following terms can be defined as the net income that a firm reinvests in itself?
- Which one of the following terms is applied to the financial planning method which uses the projected sales level as the basis for determining changes in balance sheet and income statement account values?
- The most acceptable method of evaluating the financial statements of a firm is to compare the firm's current:
- The DuPont identity can be used to help managers answer which of the following questions related to a firm's operations?
- An increase in which of the following will increase the return on equity, all else constant?
- Which one of the following accurately describes the three parts of the DuPont identity?
- Lenders probably have the most interest in which one of the following sets of ratios?