Company Expects Sales to Increase During the Coming Year, and It

question 15

Multiple Choice

company expects sales to increase during the coming year, and it is using the AFN equation to forecast the additional capital that it must raise.Which of the following conditions would cause the AFN to increase?

• A)The company previously thought its fixed assets were being operated at full capacity, but now it learns that it actually has excess capacity.
• B)The company increases its dividend payout ratio.
• C)The company begins to pay employees monthly rather than weekly.
• D)The company's profit margin increases.
• E)The company decides to stop taking discounts on purchased materials.

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Definitions:

Voltmeter

An instrument used for measuring electric potential difference between two points in an electric circuit.

Low-impedance

Refers to a circuit or device having a relatively low resistance to the flow of electrical current.

High Power Circuits

Electrical circuits designed to handle and manage high levels of electrical power, often used in industrial applications and power transmission.

Low Voltage Circuits

Electrical circuits that operate at a relatively low voltage, typically for safety and signal purposes.