8. Sales Growth (LO4, CFA8) A particular firm is operating at less than full capacity. If sales...

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8. Sales Growth (LO4, CFA8) A particular firm is operating at less than full capacity. If sales are expected to grow at only a modest rate next year, which of the following is true?

a. Assets will likely increase faster than sales in the short-term future.

b. Dividends should be reduced to conserve cash.

c. No further financial planning should be performed until the sales growth rate increases.

d. External financing will likely not be needed next year.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781260013979

9th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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