Bankston Corporation Forecasts That If All of Its Existing Financial

question 75

Multiple Choice

Bankston Corporation forecasts that if all of its existing financial policies are adhered to,its proposed capital budget would be so large that it would have to issue new common stock.Since new stock has a higher cost than retained earnings,Bankston would like to avoid issuing new stock.Which action would reduce its need to issue new common stock?

• A)increasing the percentage of debt in the target capital structure
• B)increasing the dividend payout ratio for the upcoming year
• C)increasing the proposed capital budget
• D)reducing the amount of short-term bank debt in order to increase the current ratio

Know the empirical methods to improve cognitive performance in various age groups.

Understand and calculate the economic order quantity (EOQ) for inventory management.

Comprehend and determine the break-even default percentage for credit sales.

Analyze and calculate effective annual interest rates under various payment terms.

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Definitions:

Company Policy

The guidelines and rules set by a company to outline acceptable behaviors and business practices for its employees.

Credit Cards

Payment cards issued by financial institutions that allow cardholders to borrow funds to pay for goods and services with the condition of paying back the borrowed amount plus any applicable interest.

Quality Products

This term refers to goods or items that meet or exceed consumer expectations in terms of durability, reliability, performance, and aesthetics.

Principles Of Customer Service

Fundamental guidelines that govern how to effectively serve and meet the needs of customers.