Quiz Ch 04 – Accuracy of Statements in Pro Forma Analysis
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Which of the following statements accurately applies to pro forma statements?
Which of the following statements accurately applies to pro forma statements?
Which item is least likely to increase when Barker Fabricating, operating at 79% capacity and earning a substantial profit, experiences an increase in sales?
Which capital intensity ratio represents the lowest requirement for fixed assets per dollar of sales?
Which statement regarding Carew-Gonzales Corporation’s next year pro forma statements is correct, given its current operating capacity, tax rate, fixed dividend payout ratio, and aversion to external financing?
If a company is already operating at full capacity and has a positive external financing requirement, which funding source will be utilized, given a constant dividend payout ratio and a reluctance to issue additional equity?
Based on a pro forma statement that predicts a 7 percent increase in both sales and fixed assets, what assumption can be made about the firm?
Which action can increase the maximum rate of growth a corporation can achieve?
What aspect is the financial planning process least likely to consider?
Which statement is true regarding the pro forma statement for the next year for Minchey Motor Sport, which is operating at full capacity and expecting a 5% increase in sales?
What factor is limiting sales for Moreno Refurbishing, which is currently operating at full capacity?