The Most Recent Financial Statements for Heng Co

question 35

Multiple Choice

The most recent financial statements for Heng Co.are shown here: Assets and costs are proportional to sales.The company maintains a constant 45 percent dividend payout ratio and a constant debt-equity ratio.What is the maximum increase in sales that can be sustained next year assuming no new equity is issued?

• A)$4,808.12
• B)$5,211.17
• C)$5,887.48
• D)$5,894.60
• E)$6,666.67

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Definitions:

Motivator-Hygiene Theory

The Motivator-Hygiene Theory, proposed by Frederick Herzberg, suggests that job satisfaction and dissatisfaction arise from two different sets of factors: motivators, which can create job satisfaction, and hygiene factors, which can prevent dissatisfaction but not necessarily create satisfaction.

Job Content

The specific tasks, responsibilities, and duties that make up a particular job.

Working Conditions

The environment in which an individual works, including aspects such as safety, amenities, workload, and physical conditions.

Motivator-Hygiene Theory

A theory of job satisfaction proposed by Frederick Herzberg, arguing that factors leading to job satisfaction (motivators) are different from those leading to dissatisfaction (hygiene factors).