Quiz Ch 18 – Firm’s Internal Growth Rate Characteristics
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Which does NOT describe a characteristic of a firm’s internal growth rate?
Which does NOT describe a characteristic of a firm’s internal growth rate?
Given a 12% growth in sales and no available spare capacity, what is the minimum percentage by which the firm needs to increase its fixed assets?
What is the term used to describe the final variable whose value is established in a financial plan?
Which tool is well-suited for accommodating alternative ‘what if’ scenarios in financial planning?
Which element is prone to experience irregular increases as sales expand within the percentage of the sales model?
What is the primary function of a financial plan?
True or false: Within a financial planning model, balancing items are dynamic variables that are adjusted to maintain the model’s consistency. These components are commonly known as ‘plugs’.
True or false: Financial planning gives priority to the broader perspective.
True or false: Financial planning models should incorporate a high level of detail.
True or false: Financial models are designed to pinpoint the most suitable financing plan.