Quiz Ch 16 – Factors Influencing the Increase in Additional Funds Needed (AFN)
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
Under what condition would the AFN (Additional Funds Needed) increase when a company expects sales to rise in the coming year and uses the AFN equation to forecast additional capital requirements?
Quiz Ch 16 – Jefferson City Computers
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
Considering all other factors are constant, which of the following is most likely to result in an increase in Jefferson City Computers’ Additional Funds Needed (AFN)?
Quiz Ch 16 – Key Steps in Financial Planning
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
Which of the following is an activity that is typically NOT part of the financial planning process?
Quiz Ch 16 – T/F AFN Equation and Financial Ratio Stability
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: By utilizing the AFN equation for forecasting additional funds needed (AFN), we make an implicit assumption of financial ratio stability. When these ratios are not constant, regression techniques can be employed to enhance financial forecasting.
Quiz Ch 16 – T/F Capacity Utilization and Additional Funds Requirement
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: Firm A, operating at full capacity with the same sales growth expectation as Firm B, is likely to need more additional funds, assuming all else remains constant.
Quiz Ch 16 – T/F Capital Intensity Ratio and AFN Formula Accuracy
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: When a firm’s capital intensity ratio (A/S0) decreases as sales rise, the AFN formula is prone to underestimating the required additional funds, assuming constant variables.
Quiz Ch 16 – T/F External Financing and Constant Financial Ratios
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: For a firm with positive net worth, operating fixed assets at full capacity, maintaining a 100% dividend payout ratio, and the aim to keep all financial ratios unchanged, any positive sales growth rate will necessitate external financing.