Question: Which is MOST likely to DECREASE additional funds needed? HIgher capital intensity A higher payout ratio A higher profit margin A higher sales forecast

Which is MOST likely to DECREASE additional funds needed?
HIgher capital intensity
A higher payout ratio
A higher profit margin
A higher sales forecast

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

1. A firm has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal, which of the following factors is most likely to lead to a decrease of the additional...

Q:

How would the following items impact AFN, holding everything else constant: capital intensity, growth rate, increase in A/P, profit margin, payout ratio? Additional Funds Needed (AFN) Method =...

Q:

Topic: Financial Planning and Forecasting Textbook Chapter 16: Integrated Case - New World Chemicals Inc (pp. 591 592) Required to develop financial forecasts of cash flows given data for 2016 Make...

Q:

hich of the following will reduce the Additional Funds Needed ( AFN ) ? Question 3 options: Lower retention ratio Higher spontaneous liabilities - to - sales ratio Higher capital intensity ratio...

Q:

I NEED ANWSNERS FOR THE LAST THREE QUETIONES IN STEP BY STEP 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cost of Production Schedule Cost per unit Production (units) Production...

Q:

1.)Broussard Skateboard's sales are expected to increase by 25% from $9.0 million in 2015 to $11.25 million in 2016. Its assets totaled $4 million at the end of 2015. Broussard is already at full...

Q:

1.AFN equation Broussard Skateboard's sales are expected to increase by 20% from $7.6 million in 2016 to $9.12 million in 2017. Its assets totaled $5 million at the end of 2016. Broussard is already...

Q:

Complete the following problems from Chapter 12 in Financial Management: Theory and Practice : Chapter 12: Topics: Additional Funds Needed, Forecasted Statements and Ratios, Financing Deficits...

Q:

Help with this Question! Question 3: Use the historical financial data for Hershey's for 2021A to generate an estimate of the Additional Funds Needed and the Self-Supporting Growth Rate for Hershey's...

Q:

Question 1: Broussard Skateboard's sales are expected to increase by 25% from $7.8 million in 2016 to $9.75 million in 2017. Its assets totaled $2 million at the end of 2016. Broussard is already at...

Q:

Prepare Journal, Ledger, Trial Balance, Profit and Loss A/c, Balance Sheet in MS Excel and upload in AmpEducator Your name is Owner Name. 1 You started business with cash worth $12000. 2 Deposited...

Q:

A mens clothing store marks up suits by 75% of cost. This provides an operating profit of 15% of the selling price. If a suits cost to the store is $132, determine: a. Its selling price. b. The rate...

Q:

Reviewing receiving reports and invoices for the purchase of inventory. Interviewing employees involved in the inventory process. Testing the controls over the inventory process

Q:

Pharoah Company reported the following amounts for 2022: Raw materials purchased $95,200 Beginning raw materials inventory 5,824 Ending raw materials inventory 5,040 Beginning finished goods...