Multiple Choice Questions
Multiple Choice Question 55
Planning models that are more sophisticated than the percent of sales method have
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| working capital accounts like inventory, accounts receivables, and accounts payables vary directly with sales. |
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| all variable costs change directly with sales. |
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| fixed assets that do not always vary directly with sales. |
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| all of these are true. |
| Multiple Choice Question 66 |
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Firms that achieve higher growth rates without seeking external financing
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| have a high plowback ratio. |
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| all of these are true. |
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| have less equity and/or are able to generate high net income leading to a high ROE. |
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| are not highly leveraged. |
| Multiple Choice Question 85 |
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External financing needed: Triumph Company has total assets worth $6,413,228. Next year it expects a net income of $3,145,778 and will pay out 70 percent as dividends. If the firm wants to limit its external financing to $1 million, what is the growth rate it can support?
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| 32.9% |
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| 26.5% |
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| 6.4% |
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| 30.3% |
