eliminates the need to plan more than one year in advance References References

Eliminates the need to plan more than one year in

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eliminates the need to plan more than one year in advance. References References Multiple Multiple Choice Choice Section: 3.5 External Financing and Growth ± ± ² ³ ± ± ± ± ± ² ³ ±
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12/12/16, 11 : 20 PM Assignment Print View Page 10 of 24 9. Award: 2 out of 2.00 points 2 out of 2.00 points 10. Award: 2 out of 2.00 points 2 out of 2.00 points The sustainable growth rate will be equivalent to the internal growth rate when, and only when,: a fi rm has no debt. the growth rate is positive. the plowback ratio is positive but less than 1. a fi rm has a debt-equity ratio equal to 1. the retention ratio is equal to 1. References References Multiple Multiple Choice Choice Section: 3.5 External Financing and Growth The extended version of the percentage of sales method: assumes that all net income will be paid out in dividends to stockholders. assumes that all net income will be retained by the fi rm and offset by a reduction in debt. is based on a capital intensity ratio of 1.0. requires that all fi nancial statement accounts change at the same rate. separates accounts that vary with sales from those that do not vary with sales. References References Multiple Multiple Choice Choice Section: 3.4 Financial Models ² ³ ± ± ± ± ± ± ± ± ² ³
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12/12/16, 11 : 20 PM Assignment Print View Page 11 of 24 11. Award: 2 out of 2.00 points 2 out of 2.00 points One of the primary weaknesses of many fi nancial planning models is that they: rely too much on fi nancial relationships and too little on accounting relationships. are iterative in nature. ignore the goals and objectives of senior management. ignore cash payouts to stockholders. ignore the size, risk, and timing of cash ows. References References Multiple Multiple Choice Choice Section: 3.6 Some Caveats Regarding Financial Planning Models ± ± ± ± ² ³
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12/12/16, 11 : 20 PM Assignment Print View Page 12 of 24 12. Award: 2 out of 2.00 points 2 out of 2.00 points Which account is least apt to vary directly with sales? notes payable inventory cost of goods sold accounts payable accounts receivable References References Multiple Multiple Choice Choice Section: 3.4 Financial Models Section: 3.3 Section: 3.3 The DuPont The DuPont Identity Identity Section: 3.5 External Financing and Growth ² ³ ± ± ± ±
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12/12/16, 11 : 20 PM Assignment Print View Page 13 of 24 13. Award: 2 out of 2.00 points 2 out of 2.00 points 14. Award: 2 out of 2.00 points 2 out of 2.00 points When credit is granted to another fi rm this gives rise to a(n): accounts receivable and is called a consumer credit. credit due and is called an installment note.
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  • Spring '16
  • PAUL
  • Balance Sheet, Assignment Print View, Williamson, Inc.

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