Bankston Corporation Forecasts That If All of Its Existing Financial

question 47

Multiple Choice

Bankston Corporation forecasts that if all of its existing financial policies are adhered to, 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) increasing the percentage of debt in the target capital structure
• B) increasing the dividend payout ratio for the upcoming year
• C) increasing the proposed capital budget
• D) reducing the amount of short-term bank debt in order to increase the current ratio

Develop skills for managing online courses and understanding their challenges.

Apply critical listening and information processing skills during lectures.

Understand the process and benefits of engaging in Supplemental Instruction sessions.

Learn methods for organizing and managing digital and physical study materials effectively.

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Tuberculin Skin Test

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