BJ Company's net working capital and all of its expenses vary directly with sales. The firm is currently operating at 86 percent of capacity. The firm wants no additional external financing of any kind. The tax rate is 21 percent and the dividend payout ratio is fixed at 25 percent. Which statement related to next year's pro forma statements must be correct?
(A) Total equity will remain constant at this year's endng value
(B) The maximum rate of sales increase is four percent
(C) The fem cannot exceed its internal rate of growth
(D) Accounts payable will increase at the same rate as fixed assets.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “BJ Company's net working capital and all of its expenses vary directly with sales. The firm is currently operating at 86 percent of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
All of the following statements regarding uncertainty in liabilities are true except: A. Liabilities can involve uncertainty in whom to pay. B.
Answers (1)
Pet World is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the WACC (and even negative), in which case it will be rejected.
Answers (1)
A 25-year, $1,000 par value zero-coupon rate bond is to be issued to yield 8 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a.
Answers (1)
Determine whether the following changes or events would shift the LRAS curve to the right, to the left, or not at all. Items (6 items) (Drag and drop into the appropriate area below) Political instability leads to the overthrow of the government.
Answers (1)
Which of the fundamentals of planning did the McCloskeys effectively execute?
Answers (1)
New Questions in Business
In the Reaching Beyond our Borders box titled, "Ethical Culture Clash", the story proves that a large multi-national company such as Motorola can ask its employees, and should expect them to follow the same ethical standards they would practice if
Answers (1)
Kier Company issued $600,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 5-year term to maturity. The bonds have a 6.00% stated rate of interest and interest is payable in cash on December 31 each year.
Answers (1)
Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate?
Answers (1)
Clear Colors Corporation uses a predetermined overhead rate based on direct labor costs to apply manufacturing overhead to jobs.
Answers (1)
You sell a put option on S&P 500 index with the strike price of 3300. Suppose the S&P 500 index is 3000 on the option expiration date. What is your payoff?
Answers (1)