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Hatshy [7]
3 years ago
5

Answer following question with true or false and explain.A firm's profit margin is 5%, its debt/assets ratio is 56%, and its div

idend payout ratio is 40%. If the firm is operating at less than full capacity, then sales could increase to some extent without the need for external funds, but if it is operating at full capacity with respect to all assets, including fixed assets, then any positive growth in sales will require some external financing.
Business
1 answer:
maria [59]3 years ago
8 0

Answer:

False

Explanation:

As a company's sales level increases, its current assets will increase, e.g. cash, inventories, accounts receivables increase. generally, also the fixed assets increase, specially if the firm was previous producing at full capacity even before total sales increased. But as sales increase, not only do the company's assets increase, its current liabilities generally increase also, and its profits should increase. In this case, 60% of the company's profits are reinvested in the company, and the liabilities represent more than half of the total assets. Therefore, it is possible that the company needs external financing, but it is also possible that it doesn't. You cannot assume that the company will necessarily need external financing, because retained earnings  and the increase in current liabilities might be enough to finance the company's growth in sales.

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he three main types of banks (Traditional, Credit Union, Online or Online-Only) have many tradeoffs with respect to technology,
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The saving rate from the highest to the lowest would be :

Traditional Banks  +/-  5 % of rates

Online banks +/-    4 % of rates

Credit Union +/-    2.5 % of rates

hope this helps
4 0
3 years ago
Select the most appropriate opening for a direct claim letter when the remedy is obvious. O Please send me a new Nintendo 3DS to
Illusion [34]

Answer:

Include original pertinent documents.

Explanation:

My Nintendo 3DS screen went blank, and I can’t play games on it anymore. I would like to ask for a new one.  Please consider the fact that my Nintendo 3DS is still under full warranty.

7 0
4 years ago
Read 2 more answers
Which of the following illustrates the correct sequential stages involved in creating an effective social media plan?
Zanzabum

Set social media objectives, define strategies, and identify the target audience  illustrates the correct sequential stages involved in creating an effective social media plan.

<h3>Which of the following describes the first step in developing a successful social media plan?</h3>

Setting up specific objectives and targets is the first step in developing an effective social media strategy. You cannot evaluate your success or return on investment without goals (ROI). Your social media marketing objectives should all be SMART objectives, which stand for specific, measurable, attainable, relevant, and time-bound.

Create a list of the goals you have for your social media efforts as the first stage in your measuring plan. Social media can be used for a variety of things, such as disseminating news and information, responding to client inquiries, and interacting with a community.

To know more about social media plan, refer:

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5 0
1 year ago
beginning inventory is $20,000. purchases of inventory during the year are $100,000. ending inventory is $50,000. what is cost o
Andre45 [30]

Answer: $70,000

Explanation: Add ending + Beginning

7 0
3 years ago
Customer World provides services to customers and allows customers to pay by credit card. On Thursday, a customer purchased a ca
Triss [41]

Answer:

The answer is $1.55

Explanation:

From the question above, we have the following:

Money spent by customer = $65

Transaction fee = $0.25

Percentage charge = 2% of the total charge

We calculate the total transaction fee as follows:

2% of $65 will be = 0.02 X $65

=> $1.3

Recall that there is a transaction fee = $0.25.

Therefore, total transaction fee:

$1.3 + $0.25

=> $1.55

6 0
3 years ago
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