If a Firm Uses External Financing as a Plug Item,has

question 17

Multiple Choice

If a firm uses external financing as a plug item,has a new capital budget of $2 million,a net income of $3 million,and a plowback ratio of 40%,how much should be raised in external funds?

• A) $200,000
• B) $600,000
• C) $800,000
• D) $1,200,000

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Definitions:

Job Counseling Service

Professional guidance provided to individuals seeking advice on career choices, job search strategies, and employment challenges.

Unemployed Family Members

Relatives within a family unit who are currently without paid jobs or employment.

Formal Support

Structured assistance provided by organizations or professionals, often within legal, medical, or educational contexts.

Family Cultures

The values, traditions, and norms that are unique to a family unit, influencing its members' behaviors and perceptions.