Question
A company is forecasting an increase in sales and is using the AFN model to forecast the additional capital that they need to raise. Which
A company is forecasting an increase in sales and is using the AFN model to forecast the additional capital that they need to raise. Which of the following factors are likely to decrease the additional funds needed (AFN)?
| A. | The company has a high dividend payout ratio | |
| B. | The company has a low profit margin | |
| C. | The company has a lot of spontaneous liabilities that increase as sales increase | |
| D. | The company has a low debt-equity ratio |
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
