Bankston Corporation forecasts that if all of its existing financial policies are followed, its proposed capital budget would be so large that it would have to issue new common stock. Since new stock has a higher cost than retained earnings, Bankston would like to avoid issuing new stock. Which of the following actions would REDUCE its need to issue new common stock?
A. Increase the dividend payout ratio for the upcoming year.
B. Increase the percentage of debt in the target capital structure.
C. Increase the proposed capital budget.
D. Reduce the amount of short-term bank debt in order to increase the current ratio.
E. Reduce the percentage of debt in the target capital structure.
Answer: B
You might also like to view...
Current information for the Healey Company follows: Beginning raw materials inventory$15,200 Raw material purchases 60,000 Ending raw materials inventory 16,600 Beginning work in process inventory 22,400 Ending work in process inventory 28,000 Direct labor 42,800 Total factory overhead 30,000 All raw materials used were traceable to specific units of product. Healey Company's cost of goods manufactured for the year is:
A. $139,000. B. $137,000. C. $128,600. D. $131,400. E. $125,800.
A corporation that uses subsidiary corporations to operate in more than one country cannot be termed as a multinational corporation
Indicate whether the statement is true or false
The objective of inventory management in the airline industry is ______.
A. to maximize the total revenues generated by the mix of fare classes sold for a flight B. to ensure seats are cleaned C. to provide the highest quality of service D. nonexistent, as there is no inventory relevant to air transportation
A title search involves examining prior transfers of and encumbrances to the property
a. True b. False Indicate whether the statement is true or false