Exam1Q3 - FIN 301, S04 - EXAM #4 SAMPLE EXAM Multiple...

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FIN 301, S04 -- EXAM #4 SAMPLE EXAM Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. The percent of sales method is based on which of the following assumptions? a. All balance sheet accounts are tied directly to sales. b. Most balance sheet accounts are tied directly to sales. c. The current level of total assets is optimal for the current sales level. d. Statements a and c above are correct. e. Statements b and c above are correct. ____ 2. A company is forecasting an increase in sales and is using the AFN model to forecast the additional capital that they need to raise. Which of the following factors are likely to increase the additional funds needed (AFN)? a. The company has a lot of excess capacity. b. The company has a high dividend payout ratio. c. The company has a lot of spontaneous liabilities that increase as sales increase. d. The company has a high profit margin. e. All of the statements above are correct. ____ 3. Jefferson City Computers has developed a forecasting model to determine the additional funds it needs in the upcoming year. All else being equal, which of the following factors is likely to increase its additional funds needed (AFN)?
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Exam1Q3 - FIN 301, S04 - EXAM #4 SAMPLE EXAM Multiple...

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