QUESTION 12 In which of the following situations will Firm A require greater amounts of external funding (additional funds needed, AFN) to meet its forecasted growth than Firm B? Assume the firms are identical in every other way. a. Firm A generates substantial amounts of spontaneously generated funds, whereas Frim B generates very little. b.Firm A has attained substantial economies of scale, whereas Firm B has not Firm A operates close to its operating breakeven point, whereas Firm B operates well above its operating breakeven point d. Firm A operates at full capacity, whereas Firm B does not Firm A uses the projected balance sheet method to forecast its pro forms financial statements, whereas Firm B does o e pot QUESTION 14 that results from a given percentage The degree of financial leverage (DFL) is defined as the percentage change in change in earnings before interest and taxes (EBIT). a. sales b. net operating income (NOI) c.net income O d. earnings per share (EPS) e. fixed financial costs QUESTION 23 Yesterday, Mars Inc. borrowed $225,000 from its bank at a simple interest rate of 12 percent. The loan is for nine months and the loan agreement requires the interest to be added to the amount borrowed and the total amount to be repaid in monthly installments. What is the loan's approximate annual percentage rate (APR). a. 16.99% b.15.83% OC 16.20% d. 17.59% O e. 21.60% QUESTION 24 Which of the following mathematical equations is used to calculate the degree of operating leverage (DOL)? (A = change) a. DOL = % A in earnings before interest and taxes (EBIT) % A in earnings per share (EPS) b.DOL = % A in sales % A in earnings before taxes (EBT) C. DOL = % A in sales.% A in earnings per share (EPS) O d. DOL = % A in net operating income (NOI) % A in sales O . DOL = % A in earnings per share (EPS) % A in earnings before taxes (EBT)