Answers3b - d 1. a. b. c. d. e. Pro forma financial...

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d 1. Pro forma financial statements are: a. statements recapping the performance of a firm for the past five years. b. accounting statements filed with the Securities and Exchange Commission. c. accounting statements filed with the Internal Revenue Service. d. projected accounting statements based on a sales forecast. e. the most-recently compiled accounting statements of a firm. e 2. The designated source of external financing required to make a pro forma balance sheet balance is called the: a. retained earnings account. b. common stock account. c. debt-equity ratio. d. cash flow variable. e. plug variable. d 3. Marcie’s Mercantile wants to maintain their current dividend policy, which is a payout ratio of 40 percent. The firm does not want to increase their equity financing but are willing to maintain their current debt-equity ratio. Given these requirements, the maximum rate at which Marcie’s can grow is equal to: a. 40 percent of the internal rate of growth. b.
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This note was uploaded on 06/15/2008 for the course ACC 501 504 taught by Professor Na during the Spring '08 term at University of Texas at Austin.

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Answers3b - d 1. a. b. c. d. e. Pro forma financial...

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