A company expects sales to increase during the coming year, and needs to estimate whether outside...
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A company expects sales to increase during the coming year, and needs to estimate whether outside capital will need to be raised. Which of the following conditions would increase the need for outside capital? Select one: O a. The company thought it was operating at near full capacity, but now learns that it actually has excess capacity. O b. The company increases its dividend payout ratio. O c. The company's profit margin increases. O d. The company's vendors offer more generous trade credit terms. A company expects sales to increase during the coming year, and needs to estimate whether outside capital will need to be raised. Which of the following conditions would increase the need for outside capital? Select one: O a. The company thought it was operating at near full capacity, but now learns that it actually has excess capacity. O b. The company increases its dividend payout ratio. O c. The company's profit margin increases. O d. The company's vendors offer more generous trade credit terms.
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Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
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