Quiz Ch 18 – Capital Structures and Growth Rate Comparison
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Which capital structure will lead to a firm’s internal growth rate exceeding its sustainable growth rate?
Which capital structure will lead to a firm’s internal growth rate exceeding its sustainable growth rate?
Within the major components of a financial planning model, which is NOT included?
What elements are typically considered as outputs of a financial plan?
What are the typical components included in the outputs of a financial planning model?
Which is NOT a component of the financial planning process?
In a planner’s percentage of sales model predicting a 20% sales growth for the next year, what will happen to the costs of goods sold, given that they are typically 70% of sales?
What aspect of a financial plan is responsible for discerning the implications of the forecasts generated by the plan?
How does determining the dividend payout ratio after establishing a specific capital structure impact financial planning?
What is a potential disadvantage of using dividends as the plug item in financial planning?
What action would assist a firm in increasing its internal growth rate?