PS_ch4 (2)

PS_ch4 (2) - 1. Financial planning accomplishes which of...

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1. Financial planning accomplishes which of the following for a firm? I. determination of asset requirements II. development of plans to contend with unexpected events III. establishment of priorities IV. analysis of funding options A. I and III only B. II and IV only C. I, III, and IV only D. I, II, and III only E. I, II, III, and IV 2. 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? A. fixed assets B. current expenses C. sales forecast D. projected net income E. external financing need 3. Which one of the following statements is correct? A. Pro forma statements must assume that no new equity is issued. B. Pro forma statements are projections, not guarantees. C. Pro forma statements are limited to a balance sheet and income statement. D. Pro forma financial statements must assume that no dividends will be paid. E. Net working capital needs are excluded from pro forma computations. 4. 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? A. percentage of sales method B. sales dilution method C. sales reconciliation method D. common-size method E. trend method
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5. Which one of the following terms is defined as dividends paid expressed as a percentage of net income? A. dividend retention ratio B. dividend yield C. dividend payout ratio D. dividend portion E. dividend section 6. The internal growth rate of a firm is best described as the: A. minimum growth rate achievable assuming a 100 percent retention ratio. B. minimum growth rate achievable if the firm maintains a constant equity multiplier.
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This note was uploaded on 10/25/2011 for the course ECON 393 taught by Professor D during the Spring '10 term at Rutgers.

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PS_ch4 (2) - 1. Financial planning accomplishes which of...

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