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jonny [76]
3 years ago
14

Which of the following statements is CORRECT? Question 9 options: The AFN equation for forecasting funds requirements requires o

nly a forecast of the firm's balance sheet. Although a forecasted income statement may help clarify the results, income statement data are not essential because funds needed relate only to the balance sheet. Dividends are paid with cash taken from the accumulated retained earnings account, hence dividend policy does not affect the AFN forecast. A negative AFN indicates that retained earnings and spontaneous liabilities are far more than sufficient to finance the additional assets needed. If the ratios of assets to sales and spontaneous liabilities to sales do not remain constant, then the AFN equation will provide more accurate forecasts than the forecasted financial statements method. Any forecast of financial requirements involves determining how much money the firm will need, and this need is determined by adding together increases in assets and spontaneous liabilities and then subtracting operating income.
Business
1 answer:
EastWind [94]3 years ago
3 0

AFN has negative and positive sides. The correct statement is A negative AFN indicates that retained earnings and spontaneous liabilities are far more than sufficient to finance the additional assets needed.

  • AFN is known as Projected increase in assets – spontaneous increase in liabilities – any increase in retained earnings.

When the AFN value is negative, it means the action or project that is underwork will bring about extra income for the company, which can be invested in another place.

Additional funds needed (AFN) is known as financial term used when a business intends to widen its operations.

Learn more About AFN from

brainly.com/question/13203205

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Setrakian Industries needs to raise $71.8 million to fund a new project. The company will sell bonds that have a coupon rate of
Harlamova29_29 [7]

Answer:

39,183  bonds

Explanation:

In order to determine the number of bonds that must be sold to realize cash of $71.8 million,the price per bond needs to be established using pv formula in excel as found below:

=-pv(rate,nper,pmt,fv)

rate is yield to maturity of  6.46% divided by 2

nper is the number of coupon payments which is 25 years multiplied by 2 i.e 50

pmt is the amount of semiannual coupon  i.e $2000*5.78%*6/12=$57.8

fv is the face value of $2000 per bond

=-pv(6.46%/2,50,57.8,2000)=$ 1,832.43  

number of bonds to be issued=$71,800,000/$ 1,832.43  = 39,183  bonds

5 0
4 years ago
How does a 12 year old get a lot of money
lora16 [44]

Answer:

babysitting, walking dogs, mowing lawns, shoveling snow,

Explanation:

6 0
3 years ago
Read 2 more answers
the gdp deflator in year 2 is 110 and the gdp deflator in year 3 is 118. the rate of inflation between years 2 and 3 is
Cloud [144]

Answer:

7.3%

Explanation:

Inflation Rate between years 2 and 3 = ((GDP Deflator in Year 3 - GDP Deflator in Year 2) / GDP Deflator in Year 2) * 100 = ((118 - 110) / 110) * 100 = 7.2727%

8 0
3 years ago
A person with a master’s degree is most likely qualified for a career as
julsineya [31]

A master's degree is an academic degree awarded by universities or colleges. Maybe try looking up the requirements for the jobs to see what type of degree is needed. but I would guess B or C.

5 0
4 years ago
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The Hopper Leg Winery from California's Sonoma Valley is trying to enter the wine market in France. To the company's surprise, i
dimaraw [331]

Answer:

exclusive

Explanation:

Marketing mix can be defined as the choices about product attributes, pricing, distribution, and communication strategy that a company blends and offer its targeted markets (customers) so as to build and maintain a desired response.

Generally, a marketing mix is made up of the four (4) Ps;

1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.

2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.

3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.

4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.

In this scenario, The Hopper Leg Winery from California's Sonoma Valley is trying to enter the wine market in France. To the company's surprise, it found that the France wine distribution channel was difficult to access as an outsider. Based on this, the market must have an exclusive distribution channel i.e the exclusive or unique rights to be a retailer for the supplier or manufacturer of the wine products.

7 0
3 years ago
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