Suppose a firm calculates its external financial need for a growth rate of ten percent and finds that the need is a negative value. What are the firm's options in this case?
What will be an ideal response?
With a negative external financing need, the firm can expect to have a surplus of funds given the projected rate of growth. The firm can use those funds to reduce current liabilities, reduce long-term debt, buy back common stock, increase dividends, or invest in assets and resources, as needed, to increase its growth rate.
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A company has $817,000 in bonds payable with an unamortized premium of $20,000 . If one-fourth of the bonds are converted to common stock, the entry that would record the conversion is:
a. Bonds Payable 204,250 Common Stock 204,250 b. Bonds Payable 224,250 Common Stock 224,250 c. Common Stock 199,250 Bonds Payable 199,250 d. Bonds Payable 204,250 Unamortized Bond Premium 5,000 Common Stock 209,250
The changes in a net-change MRP system ______.
A. cause the entire production plan to regenerate B. affect only those components whose information has been changed or updated C. explode the bill of materials D. cause shutdown of the production process
Firms that are most likely to use backlogs tend to have a make-to-order strategy
Indicate whether the statement is true or false
Natural disasters present the largest risk for infrastructure loss
Indicate whether the statement is true or false