Question
Question 7 What is the most correct implication of the additional funds needs (AFN)? If AFN is negative, then you must secure additional financing. If
Question 7
What is the most correct implication of the additional funds needs (AFN)?
If AFN is negative, then you must secure additional financing. | ||
If AFN is positive, then you have extra funds to pay off debt. | ||
If AFN is positive, then you have extra funds to buy some short-term investments. | ||
If AFN is positive, then you must issue additional new stock. |
Question 8
A company expects $600 million of sales this year, and it forecasts a 15% increase for next year. The CFO uses this equation to forecast inventory requirements at different levels of sales: Inventories = $30.2 + 0.25(Sales). All dollars are in millions. What is the projected inventory turnover ratio for the coming year?
3.40 | ||
3.89 | ||
4.36 | ||
5.82 |
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