Ch_04_S_Key - CF Quiz 1 Ch 04 Key 1-1. Phil is working on a...

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1 CF Quiz 1 Ch 04 Key 1-1. Phil is working on a financial plan for the next three years. This time period is referred to as which one of the following? A. financial range B. planning horizon C. planning agenda D. short-run E. current financing period Refer to section 4.1 2-7. 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. C. maximum growth rate achievable excluding external financing of any kind. D. maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio. E. maximum growth rate achievable with unlimited debt financing. Refer to section 4.4 3-12. A firm is operating at 90 percent of capacity. This information is primarily needed to project which one of the following account values when compiling pro forma statements? A. sales B. costs of goods sold C. accounts receivable D. fixed assets E. long-term debt Refer to section 4.3 4-18. Sal's Pizza has a dividend payout ratio of 10 percent. The firm does not want to issue additional equity shares but does want to maintain its current debt-equity ratio and its current dividend policy. The firm is profitable. Which one of the following defines the maximum rate at which this firm can grow? A.
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Ch_04_S_Key - CF Quiz 1 Ch 04 Key 1-1. Phil is working on a...

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