Goldilochs Inc

question 8

Multiple Choice

Goldilochs Inc. reported sales of $8 million and net income of $1.5 million. The firm has $10.5 million in total assets and $1 million in current liabilities. The firm currently pays out 75 percent of its net income to shareholders. Assume that all assets and current liabilities are expected to grow with sales. If Goldilochs does not want to rely on any external sources of funds, what is the most sales can grow (in percent) ?

• A) 3.18 percent
• B) 2.99 percent
• C) 4.11 percent
• D) 3.64 percent

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Definitions:

Consultation

The process of getting advice or guidance from someone knowledgeable in a specific area.

Pressure Tactics

Strategies or methods applied to persuade or compel someone to act in a desired way, often involving the use of stress or coercion.

Executive Placement

The process of finding and positioning highly skilled and experienced individuals in senior management roles within organizations.

Managerial Position

A role within an organization that involves directing and overseeing the work of employees and making strategic decisions.