Considering Each Action Independently and Holding Other Things Constant, Which

question 15

Multiple Choice

Considering each action independently and holding other things constant, which of the following actions would reduce a firm's need for additional capital?

• A) An increase in the dividend payout ratio.
• B) A decrease in the profit margin.
• C) A decrease in the days sales outstanding.
• D) An increase in expected sales growth.
• E) A decrease in the accrual accounts (accrued wages and taxes).

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Definitions:

Termination

The well-defined, commonly sharp end of a crystal.

Horizontal Shear Stresses

Stress on rock formations or materials that occurs parallel to the earth's surface, often leading to deformation or displacement.

Strike-Slip Faults

A type of fault where rock strata are displaced mainly horizontally along the fault plane.

Shear Zones

Zones of intense deformation within the Earth's crust where rocks are subjected to shear stress, leading to displacement.