If Sales Growth for XYZ Corporation Exceeds 6%,XYZ Will Need

question 2

Multiple Choice

If sales growth for XYZ Corporation exceeds 6%,XYZ will need to seek external financing.This means that 6% is the:

• A) external growth rate.
• B) internal growth rate.
• C) optimal growth rate.
• D) sustainable growth rate.

Identify guidelines for choosing between FIFO and average cost methods for inventory valuation.

Comprehend the principles and implications of the specific identification method of inventory costing.

Understand the effects of price changes on inventory valuations and company profit margins.

Determine the relationship between inventory valuation methods and tax implications.

---

Definitions:

Net Income

The amount of total revenues that exceeds total expenses of a company during a specific time period.

Earnings Per Share

A profitability metric that measures the amount of net income earned per share of a company's outstanding stock.

Dividends Per Share

The amount of dividend a company pays out for each share of its stock over a specific period, typically a quarter or year.