A company expects sales to increase during the coming year, and it is using the AFN equation to forecast the additional capital that it must raise. Which of the following conditions would cause the...


A company expects sales to increase during the coming year, and it is using the AFN equation to forecast the additional capital<br>that it must raise. Which of the following conditions would cause the AFN to increase?<br>Answer<br>AJThe company previously thought its fixed assets were being operated at full capacity, but now it learns that it actually has<br>excess capacity.-<br>B)The company increases its dividend payout ratio.<br>CThe company begins to pay employees monthly rather than weekly.<br>DIThe company's profit margin increases.<br>E)The company decides to stop taking discounts on purchased materials.<br>

Extracted text: A company expects sales to increase during the coming year, and it is using the AFN equation to forecast the additional capital that it must raise. Which of the following conditions would cause the AFN to increase? Answer AJThe company previously thought its fixed assets were being operated at full capacity, but now it learns that it actually has excess capacity.- B)The company increases its dividend payout ratio. CThe company begins to pay employees monthly rather than weekly. DIThe company's profit margin increases. E)The company decides to stop taking discounts on purchased materials.

Jun 05, 2022
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