There Are Annually More Than 10,000 Mergers in the United

question 61

Multiple Choice

There are annually more than 10,000 mergers in the United States that total more than

• A) $700 billion.
• B) $825 billion.
• C) $975 billion.
• D) $1 trillion.
• E) $3 trillion.

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Definitions:

EFN

Expected Funds Needed, an estimation of the additional financing a company will require in the future based on its projected growth and existing financial structure.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales and earnings without increasing leverage or debt financing.

Leverage Ratios

Financial metrics that assess the level of debt in a company's capital structure relative to its equity or assets.

Dividend Policy

A company's approach to distributing profits back to its shareholders, whether through cash dividends, stock dividends, or share repurchase plans.