BFIN 350 CHAPTER 3 AND 4 EXAM QUESTIONS WITH ALL CORRECT ANSWERS
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Course
BFIN 350
Institution
BFIN 350
BFIN 350 CHAPTER 3 AND 4 EXAM QUESTIONS WITH ALL CORRECT ANSWERS
What is NOT incorporated in the calculation of Du Pont Identity - Answer-Receivables turnover
The capital intensity ratio - Answer-is the reciprocal of the total assets turnover ratio
The percentage of sales approach to financ...
BFIN 350 CHAPTER 3 AND 4 EXAM
QUESTIONS WITH ALL CORRECT
ANSWERS
What is NOT incorporated in the calculation of Du Pont Identity - Answer-Receivables
turnover
The capital intensity ratio - Answer-is the reciprocal of the total assets turnover ratio
The percentage of sales approach to financial planning requires - Answer-separating
accounts into those that vary with sales and those that do not
The two key dimentions of financial planning are - Answer-the planning horizon
aggregation
if the firm is to grow at a sustainable growth rate, its growth depends on the following
factors - Answer-profit margin
financial policy
dividend policy
the internal growth rate of a firm is best described as - Answer-The maximum growth
rate achievable without external financing of any kind
The sustainable growth rate will be equivalent to the internal growth rate when -
Answer-a firm has no debt
Financial planning allows - Answer-a firm to plan for the future in a systematic fashion
All else the same sustainable growth will decrease with increases in - Answer-total
equity
The dividend payout ratio is defined as cash dividends divided by - Answer-net income
Increasing all accounts by a fixed percentage may not be the best financial planning
model because - Answer-not all accounts vary directly with sales
The financial ratio measured as EBIT plus depreciation divided by interest expense -
Answer-Cash Coverage Ratio
The financial ratio measured as the firm's long-term debt divided by its total
capitalization - Answer-the long-term debt ratio
The long-term debt ratio is probably of most interest to a firm's - Answer-debt holders
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