Suppose a firm makes the following policy changes. If the change means that external, nonspontaneous financial requirements (AFX) will increase, indicate this by a (+); indicate a de-crease by a ( —); and indicate indeterminate or no effect by .1 (0). Think in terms of the immediate, short-run effect on funds requirements.

a. The dividend payout ratio is increased.

b. The firm contracts to buy, rather than make, certain components used in its products.

c. The firm decides to pay all suppliers on deliver)-, rather than after a 30-day delay, to take advantage of discounts tor rapid payment.

d. The firm begins to sell on credit (previously all sales had been on a cash basis).

e. The firm's profit margin is eroded by increased competition; sales are steady.

f. Advertising expenditures are stepped up.

g. A decision is made to substitute long-term mortgage bonds tor short-term bank loans.

h. The firm begins to pay employees on a weekly basis (previously it had paid employees at the end of each month).

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