Quiz Ch 03 – Dividend Payout Ratio and Internal Growth Rate
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition
What is the internal growth rate of a firm with a 100 percent dividend payout ratio?
What is the internal growth rate of a firm with a 100 percent dividend payout ratio?
Which company is using its fixed assets more efficiently, given that Dominic’s Custom Draperies has a fixed asset turnover rate of 1.13 and Window Fashions has a fixed asset turnover rate of 1.26, both with similar operations?
Which of the following questions related to a company’s operations can be answered using the DuPont identity?
Which aspects of firm performance can be determined using the DuPont identity?
If all ratios have positive values and other things are equal, what effect would an increase in current liabilities have?
Which one will increase the liquidity of a firm?
When considering obtaining outside financing in the near future for building a new building, which set of ratios represents the most suitable target mix?
Why is it important to consider the Quick Ratio and Cash Ratio in addition to the Current Ratio when assessing a company’s liquidity?
When assessing financial ratios, which of the following reasons does NOT undermine the straightforward interpretation of the ratios?
What are the benefits and purposes of financial statement analysis?