In the Percent-Of-Sales Method, an Increase in Dividends

question 22

Multiple Choice

In the percent-of-sales method, an increase in dividends

• A) will increase required new funds.
• B) will decrease required new funds.
• C) has no effect on required new funds.
• D) more information is needed.

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Definitions:

Talent

Natural ability or skill possessed by individuals, often refined through practice and training.

ATMs

Automated Teller Machines, electronic banking outlets that allow customers to complete basic transactions without the need for a branch representative.

Bank Branches

Physical locations of a bank where customers can conduct a range of financial transactions in person.

Substitutes

Products or services that can substitute for one another, with a price hike in one resulting in a heightened demand for the alternative.