____ Are Drafts That Mature on the Payment Date Set

question 69

Multiple Choice

____ are drafts that mature on the payment date set in the future.

• A) Time or term drafts
• B) Delayed drafts
• C) Lapsed drafts
• D) Real estate drafts
• E) none of the other choices are correct

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Definitions:

AFN Formula

Additional Funds Needed formula; a financial model that projects the additional financing required by a firm to support its desired level of growth.

Dividend Payout Ratio

The proportion of earnings a company pays to its shareholders in the form of dividends, typically represented as a percentage of the company’s net income.

External Financing

Funding obtained from sources outside the company, including bank loans, issuance of equity or debt, and other borrowing avenues.

Sales Forecast

An estimation of the sales a company expects to achieve over a certain period in the future.