Use the Following Information and the Percent-Of-Sales Method to Answer

question 64

Multiple Choice

Use the following information and the percent-of-sales method to answer the following question(s) .
Below is the 2004 year-end balance sheet for Banner,Inc.Sales for 2004 were $1,600,000 and are expected to be $2,000,000 during 2005.In addition,we know that Banner plans to pay $90,000 in 2005 dividends and expects projected net income of 4% of sales.(For consistency with the Answer selections provided,round your forecast percentages to two decimals. )

-Banner's projected fixed assets for 2005 are:

• A)$1,120,000.
• B)$1,260,000.
• C)$1,000,000.
• D)$2,380,000.

Comprehend the concept of an efficient portfolio and its attributes.

Grasp the significance of diversification in reducing portfolio risk.

Know the measures of risk including variance, standard deviation, and the coefficient of variation.

Understand the impact of risk aversion on investment decisions and market outcomes.

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