Assume the following facts about a firm:
Sales(this year) $100,000
Net income(this year) $10,000
Assets(this year) $50,000
Current liabilities(this year) $2,000
Anticipated growth rate 12%
Proposed dividend payout ratio 60%
The firm's external funding requirement for next year is
(Hint: You don't have to remember the EFR formula. Just realize that the funding requirement is the growth in assets less that in current liabilities less next year's retained earnings.)
A) $1,280
B) ($960)
C) $1,760
D) $800
A
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The National Association of Insurance Commissions has developed standardized policies for medigap coverage
Indicate whether the statement is true or false.
Payday lenders
A) make money by providing one-time assistance during a time of financial need. B) make money by keeping borrowers in debt. C) encourage repeat borrowing. D) all of the above.