Fin 534 Week 8 Quiz 100% Score

1.       Which of the following statements is CORRECT?

2.       Which of the following is NOT one of the steps taken in the financial planning process?

3.       Which of the following statements is CORRECT?

4.       North Construction had $850 million of sales last year, and it had $425 million of fixed assets that were used at only 60% of capacity. What is the maximum sales growth rate North could achieve before it had to increase its fixed assets?

5.       Which of the following statements is CORRECT?

6.       F. Marston, Inc. has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal, which of the following factors is most likely to lead to an increase of the additional funds needed (AFN)?

7.       Which of the following statements is CORRECT?

8.       The term "additional funds needed (AFN)" is generally defined as follows:

9.       The Besnier Company had $250 million of sales last year, and it had $75 million of fixed assets that were being operated at 80% of capacity. In millions, how large could sales have been if the company had operated at full capacity

10.   Spontaneous funds are generally defined as follows:

11.   The capital intensity ratio is generally defined as follows:

12.   A company expects sales to increase during the coming year, and it is using the AFN equation to forecast the additional capital that it must raise. Which of the following conditions would cause the AFN to increase?

13.   Last year National Aeronautics had a FA/Sales ratio of 40%, comprised of $250 million of sales and $100 million of fixed assets. However, its fixed assets were used at only 75% of capacity. Now the company is developing its financial forecast for the coming year. As part of that process, the company wants to set its target Fixed Assets/Sales ratio at the level it would have had had it been operating at full capacity. What target FA/Sales ratio should the company set?

14.   Which of the following statements is CORRECT

15.   Which of the following assumptions is embodied in the AFN equation

    • Posted: 6 years ago
    Fin 534 Week 8 Quiz 100% Score

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