Which One of the Following Is Correct When a Firm's

question 57

Multiple Choice

Which one of the following is correct when a firm's pro forma statements project a net income of $5,000 and an external financing requirement of $2,000?

• A) Dividends cannot exceed $3,000.
• B) Total assets cannot grow by more than $3,000.
• C) Retained earnings cannot grow by more than $5,000.
• D)The internal growth rate is 60%.

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Definitions:

Social Media

Online platforms and technologies that enable users to create, share, and engage with content and participate in social networking.

Binding Document

A legal agreement that is enforceable in a court of law.

Business Contract

A legal agreement between two or more parties that involves the exchange of goods, services, money, or a promise of any of these.

Cultural Dimension

An aspect of a culture that can be measured and compared with other cultures, often used in studying cross-cultural communication and behaviors.