Quiz Ch 18 – Predicting Cost of Goods Sold Growth in a Percentage-of-Sales Model

Fundamentals of Corporate Finance

Brealey, Myers, and Marcus

10th Edition

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What will happen to the cost of goods sold if sales revenues are expected to increase by 20% next year in a percentage-of-sales model where the cost of goods sold is projected to stay at 80% of sales?

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  • Search Terms: a) % %. b) %. c) a are at by constant. cost could either expected faster forecasts goods grow if model next of or percentage-of-sales remain revenues sales sales. sales. d) slower sold sold: than that to will year,
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