Several factors affect firm need for external funds

Assignment Help Business Management
Reference no: EM133496062

Factors that affect the AFN equation

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 improves its production system and increases its profit margin.

The firm's inventory turnover decreases, with no effect on the sales forecast and the cost of goods sold as a percentage of sales.

Accounts payable and accrued liabilities represent obligations that the firm must pay off. Assuming everything else holds constant, if they increase, the firm's AFN will increase or decrease.

Reference no: EM133496062

Questions Cloud

What are six relevant and meaningful learning outcomes : What are the main components of your online course, including a minimum of three course goals? What are six relevant and meaningful learning outcomes
Write a draft thesis statement responding to that editorial : What publication could you submit your editorial to? Who is their average audience? Write a draft thesis statement responding to that editorial,
What is the minimum annual value : what is the minimum annual value you can bid for this contract and still return 19 percent in nominal terms?
Evaluate the principles of democracy and federalism : Evaluate the principles of democracy and Federalism. Critically analyze the American political environment and issues relating to present day using primary
Several factors affect firm need for external funds : Several factors affect a firm's need for external funds. The firm improves its production system and increases its profit margin.
Constructing well-diversified investment portfolio : How do expected return, variance, and covariance play a vital role in constructing a well-diversified investment portfolio?
What are some limitations and potential problems : What are some limitations and potential problems that might be encountered during a financial condition analysis?
Explain why an organisation might decide : Explain why an organisation might decide - lease an asset instead of buying it for its expansion plans - finance expansion through retained earnings
What problem were the scientists studying : What problem were the scientists studying? How does what the scientists studied relate to specific topics we have covered inclass?

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd