Higher growth rates without seeking external financing

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Question 1 Planning models that are more sophisticated than the percent of sales method have working capital accounts like inventory, accounts receivables,and accounts payables vary directly with sales.

Question 2 Firms that achieve higher growth rates without seeking external financing

  • are not highly leveraged.
  • have less equity and/or are able to generate high net income leading to a high ROE. a
  • ll of these are true.
  • have a high plowback ratio.

Question 3 External financing needed: Triumph Company has total assets worth $6,413,228. Next year it expects a net income of $3,145,778 and will pay out 70 percent as dividends. If the firm wants to limit its external financing to $1 million, what is the growth rate it can support?

  • 30.3%
  • 26.5%
  • 32.9%
  • 6.4%

Reference no: EM13752795

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