62 Contemporary Financial Management 3. 4 For a given level of sales, if a firm's profit margin increases, then the additional financing needed will A. increase B decline. C be unchanged. For a given level of sales, if the market price of a firm's stock increases, then the additional financing needed will A. increase. B. decline C. be unchanged. Which of the following is an example of an operational objective? A. taising market share by 5% in 12 months. B. reducing debt to total capital ratio by 10 % in one year. C. decrease dependence on sales to the auto industry by 10 % in 2 years. D raising operational profit margin by 2 % in one year. E. All of the above. 5. 6 An operating plan consists of a A marketing plan B. production plan C. human resource plan. D. financial plan. E all of the above. The procedures for preparing the stater ent of cash flows are presented in FASB No. A 10 B. 25 C. 45 D 95 E. 78 4 . 6 . a = c da & c dc tai 7. 8. A portion of the total financing needed can be generated internally from increased A sales B. retained earnings. C. dividends. D. sale of common stock. E. all of the above. 9. Budgets are used to a firni's operations. A plan, coordinate, and develop B. coordinate, develop, and control C. develop, plan, and control D. plan, coordinate, and control E. control, plan, and start