In the Percent-Of-Sales Method,a Decrease in Dividends

question 14

Multiple Choice

In the percent-of-sales method,a decrease 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.

Understand and apply the process of converting mixed numbers to improper fractions.

Master the conversion of improper fractions to whole or mixed numbers.

Perform addition and subtraction operations with fractions and mixed numbers.

Master reducing fractions to their lowest terms.

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Definitions:

Principal Repaid

The portion of a loan payment that goes toward reducing the original loan amount, as opposed to the portion that goes toward paying interest.

Interest Paid

The amount paid over a period for borrowing money, typically expressed as an annual percentage rate.

Loan

A sum of money that is borrowed and is expected to be paid back with interest.

Asset's Market Value

The current price at which an asset can be bought or sold in a marketplace, reflecting the value assigned to it by the market participants.