1Goldfish limited generated a net income of $20 million in 2021. The company practices a 20% divined policy. If the company has 4 million shares outstanding and the current market price of its stock is $20, what is the dividend yield for an investor holding Goldfishs stock?

a. 7.5%

b. 5.0%

c. It cannot be determined

d. 20%

2Which one of the following statements does not supports the view that sales forecasting is the foundation of financial forecasting?

a. Too optimistic sales forecasting would result in a build-up of too much inventory.

b. The forecasting of A/R or A/P can be directly linked to sales forecasting.

c. Sales are the byproduct of a companys market power; hence, it should not be critical in financial forecasting.

d. The forecasting of total assets can be directly linked to sales forecasting.

3Which one of the following is an example of feedback mechanisms in financial planning?

a. Increase in spontaneous assets due to increased projection of sales.

b. Readjustment of interest due to raising new capital to support AFN.

c. Increase in total assets to support sales growth.

d. Decrease in spontaneous assets due to decreased projection of sales.