Considering Each Action Independently and Holding Other Things Constant,which of the Following

question 85

Multiple Choice

Considering each action independently and holding other things constant,which of the following actions would reduce the firm's need for additional capital?

• A) An increase in the dividend payout ratio.
• B) A decrease in the profit margin.
• C) A decrease in the days sales outstanding.
• D) An increase in expected sales growth.
• E) A decrease in the accrual accounts (accrued wages and taxes).

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Definitions:

Purchase Decision

The process by which a consumer selects a product or service over others based on various factors such as need, desire, price, and accessibility.

Limited Temporary Basis

A restricted and short-term arrangement or condition, often applied to agreements, access, or usage rights.

Final Commitment

The ultimate pledge or decision made by a party in a process or agreement.

Warranty Terms

The conditions under which a manufacturer or seller agrees to repair, replace, or refund a purchased product within a specified time frame if it fails to meet stated quality and performance standards.