Fresno Salads has current sales of $4,900 and a profit margin of 6.5 percent. The firm estimates that sales will increase by 5 percent next year and that all costs will vary in direct relationship to sales. What is the pro forma net income?
Multiple Choice Quizzes with Answer in English (Page: 357)
A Procrustes approach to financial planning is based on:
The financial planning process tends to place the least emphasis on which one of the following?
Financial plans generally tend to ignore which one of the following?
Sal’s Pizza has a dividend payout ratio of 10 percent. The firm does not want to issue additional equity shares but does want to maintain its current debt-equity ratio and its current dividend policy. The firm is profitable. Which one of the following defines the maximum rate at which this firm can grow?
If a firm equates its pro forma sales growth to the rate of sustainable growth, and has positive net income and excess capacity, then the:
The sustainable growth rate:
Which one of the following will cause the sustainable growth rate to equal to internal growth rate?
The external financing need:
Which of the following sentences is correct?
- One of my friends are lawyers
- One of my friend is a lawyer
- One of my friends is a lawyer
- One of my friends are a lawyer
The best passive form of the sentence: ‘We don’t like idle people’-
The antonym for ‘inimical’-
What kind of noun is ‘Girl’?
What kind of man is quite the opposite type of ‘supercilious’?
What is the full name of the great American short story writer O’Henry?
All else constant, which one of the following will increase the internal rate of growth?
Blasco Industries is currently at full-capacity sales. Which one of the following is limiting sales to this level?
Sales can often increase without increasing which one of the following?
A firm’s external financing need is financed by which of the following?
Martin Aerospace is currently operating at full capacity based on its current level of assets. Sales are expected to increase by 4.5 percent next year, which is the firm’s internal rate of growth. Net working capital and operating costs are expected to increase directly with sales. The interest expense will remain constant at its current level. The tax rate and the dividend payout ratio will be held constant. Current and projected net income is positive. Which one of the following statements is correct regarding the pro forma statement for next year?