1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
GalinKa [24]
3 years ago
8

Several factors affect a firm’s need for external funds. Evaluate the effect of each following factor and place a check next to

each factor that is likely to increase a firm’s need for external capital—that is, its AFN (additional funds needed). Check all that apply. The firm increases its dividend payout ratio. The firm’s inventory turnover decreases, with no effect on the sales forecast. The firm previously thought its fixed assets were being operated at full capacity, but now it learns that it actually has excess capacity. Dividends to common shareholders are paid out of after-tax earnings. Do these payouts affect a firm’s AFN? No, dividends do not affect a firm’s AFN, because they are paid out of after-tax earnings. Yes, dividends still affect a firm’s AFN even though they are paid out of after-tax earnings.
Business
1 answer:
Studentka2010 [4]3 years ago
5 0

Answer:

1.

  • The firm increases its dividend payout ratio.

This will increase the need for external funds because with more funds going towards dividends, there will be less funds available to fund operations. The company will therefore be more probable of being in need of Additional funds.

  • The firm’s inventory turnover decreases, with no effect on the sales forecast.

If the firm's inventory turnover increases, it means that the firm is taking longer to sell off inventory. This will mean that the company will have to invest more in working capital to maintain these inventory levels. This will lead to a higher probability of them needing additional funds.

2. Yes, dividends still affect a firm’s AFN even though they are paid out of after-tax earnings.

Even though they are paid after-tax, they still eat into the funds that the business can be able to set aside to fund operations. So when dividends are paid, the need for AFN increases as well.

You might be interested in
A $23 credit to sales was posted as a $230 credit. By what amount is the sales account in error?
Anni [7]

Rs 253 must be debited to his account .

Rs ( 23+230)= 253

A $23 credit to sales was posted as a $230 credit.In this case, the transaction was recorded on the wrong side with wrong amount. Thus Rs 253 must be debited to his account .

Rs ( 23+230)= 253.

  • Credit sales refer to a sale in which the amount owed will be paid at a later date. In other words, credit sales are purchases made by customers who do not render payment in full, in cash, at the time of purchase.
  • It is common for credit sales to include credit terms. Credit terms are terms that indicate when payment is due for sales that are made on credit, possible discounts, and any applicable interest or late payment fees.

To know more about visit:

brainly.com/question/28197660?

#SPJ4

6 0
2 years ago
John wants his assessment reduced by 30% since his property is located next to a power plant. The SCAR hearing officer granted J
Ray Of Light [21]

Answer:

John must first complete a process that starts with Form RP-524. Since the problem states that he already had a SCAR hearing, the only option left is the Tax Certiorari Proceeding which is a legal lawsuit filed in the New York State Supreme Court.

Explanation:

The compete process is as follows:

John must first file a grievance form, if he lives outside of New York City and Nassau County, he can use Form RP-524 "Complaint on Real Property  Assessment" and file it with the assessor or the board of assessment review (BAR) in John's city. New York City residents and Nassau Country residents must contact directly their tax or review commissions by telephone. The grievance forms must be filed before Grievance Day in John's city (it varies depending on the city).

Then John will have to appear before the BAR and present his claim. The BAR is made up of 5 members and it cannot include the assessor or any member from the assessor's office.

If the BAR's decision doesn't satisfy John, then he can proceed with a Small Claims Assessment Review (SCAR). Since John was granted only a 20% reduction by the SCAR hearing officer, the only option left is the Tax Certiorari Proceeding which is a legal lawsuit filed in the New York State Supreme Court.

5 0
3 years ago
The law of demand says that as the price of a good decreases, the quantity demanded of the good __________.
masya89 [10]

Answer:

increase

Explanation:

the law is indirectly proportional

4 0
2 years ago
Create an oral presentation about yourself that will provide your interviewee with an accurate picture of your skills and prepar
miss Akunina [59]

In creating a personal commercial, one have to give a conversational and natural oral presentation. One can start with:

  • Been confident, have a good poised, and been professional.

<h3>What is a personal commercial?</h3>

Others are:

  • Greet by saying: Hello, my name is (name).
  • State your Goal, Interest and also your passion and others kind of attributes that can set you apart from others.

A personal commercial is known to be a short introduction that a person often give to a specific employer, mentor, or others.

Conclusively, By following the steps above, one can give a good  personal commercial.

Learn more about Commercial from

brainly.com/question/3837126

#SPJ1

6 0
2 years ago
Latesha Moore has a choice at work between a traditional health insurance plan that pays 80 percent of the cost of doctor visits
Lelu [443]

Answer:

Consider the following calculation and analysis

Explanation:

We will analyse from cost perspective, the alternative with lower cost should be selected.

Total no. of doctor visit = 12 monthly visit + 3 times special visit = 15

Cost = 50 * 15 = $750

Under Traditional health checkup plan

Cost of plan = $ 250 + (20% of doctor visiting charges) = 250 + 20% of 750 = $400

Under HMO

Premium = 20 * 12 months = $240

Co payment = 10 * 15 = 150

Total = $ 390

There is a saving of $10 in HMO, so she should opt for this option. Moreover, the benefit of HMO would be the payments are monthly in small installments ,rather than a big outflow as in the case of traditonal plan.

6 0
3 years ago
Other questions:
  • Which situation best illustrates the role of households in the circular flow of
    8·2 answers
  • Sailmaster makes high-performance sails for competitive windsurfers. below is information about the inputs and outputs for one m
    8·1 answer
  • The risk-free rate is 7% and the expected rate of return on the market portfolio is 11%. a. Calculate the required rate of retur
    6·1 answer
  • Chang Co. issued a $54,300, 120-day, discounted note to Guarantee Bank. The discount rate is 9%. Assuming a 360-day year, the ca
    9·1 answer
  • [The following information applies to the questions displayed below.] The following information was reported in the December 31,
    11·1 answer
  • The first two traditional project phases (concept and development) focus on planning, and are often referred to as _____. a. pro
    15·2 answers
  • What is the preferred method of resolving a partner's deficit balance, according to the Uniform Partnership Act?
    5·1 answer
  • Why might Robert choose to attend a technical school rather than a four-year university?
    5·1 answer
  • Can someone explain how I you know submit a resume? I learned how to fill one out freshman year but they never told me how to su
    13·1 answer
  • A company is seeking to avoid the mistakes disney made with disneyland paris. A key priority then is to?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!