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:

Superego

In psychoanalytic theory, the part of the personality that represents the internalized ideals and provides standards for judgment.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality.

Preconscious

The part of the mind that contains thoughts, feelings, and memories not currently in consciousness but can be easily accessed.

Id

A component of Sigmund Freud's psychoanalytic theory, representing the unconscious part of the psyche that operates on the pleasure principle and seeks immediate gratification.