A Company Calculates Its Discretionary Financing Needed and Determines This

question 59

Multiple Choice

A company calculates its discretionary financing needed and determines this amount of capital cannot be raised at a reasonable cost.Which of the following would reduce the amount of discretionary financing needed?

• A) reduce the company's net profit margin
• B) reduce the company's sales growth rate
• C) increase the company's dividend payout ratio
• D) increase the proportion of the company's sales that are made on credit

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Definitions:

Instinctive Processes

Innate, biologically determined behaviors that organisms are born with, which do not require learning.

Programmed

The state of having been designed or set up according to a predetermined plan or set of instructions, often used in the context of machinery, computers, or behavioral interventions.

Cellular Modification Theory

A hypothesis in neuroscience suggesting that changes in brain cells' structure or function underpin learning and memory.

Neural Circuits

Complex networks of neurons that work together to process information and execute functions necessary for life and behavior.