When we use the AFN equation to forecast the additional funds needed (AFN), we are implicitly assuming that all financial ratios are constant. If financial ratios are not constant, regression techniques can be used to improve the financial forecast.
Answer the following statement true (T) or false (F)
True
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The net income of Sunrise Corporation is $5 million, and shareholders’ equity is $50 million. The return on equity is:
A. 5%. B. 10%. C. 20%. D. 15%. E. 25%.
Chloe invested a lump sum of $24,000 in a mutual fund with an offer price of $8.05. How many shares did she purchase? (Round to the nearest thousandth)
A) 1,600.500 B) 1,633.340 C) 3,690.342 D) 2,981.366
Parts and Materials for the skis made by the Downhill Adventures Company are supplied by two suppliers. Supplier A's materials make up 30% of what is used, with supplier B providing the rest
Past records indicate that 15% of supplier A's materials are defective and 10% of B's are defective. Since it is impossible to tell which supplier the materials came from once they are in inventory, the manager wants to know which supplier most likely supplied the defective materials the foreman has brought to his attention. Provide the manager this information.A) Supplier A B) Supplier B C) Both are equally likely D) Cannot be determined from this information
The degree of financial leverage is defined as the percentage change in ____
A) EBIT resulting from a given percentage change in sales B) EPS resulting from a given percentage changes in sales C) EBIT resulting from a given percentage change in EPS D) EPS resulting from a given percentage change in EBIT