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:

Stress

A state of mental or emotional strain or tension resulting from adverse or demanding circumstances.

Active Conflict

A situation where parties involved are aware of a disagreement or dispute and are engaging in actions or discussions to address and resolve the issues.

Self-Talk

The internal dialogue that individuals have with themselves, which can be positive or negative.

Growing Dissatisfaction

The increasing feeling of unhappiness or discontentment in a situation or relationship.