Explore BrainMass

Explore BrainMass

    External Finance need with movements in variety of cashflow?

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Indicate whether each of the following would typically increase or decrease a firm's need for additional external financing:

    a) An increase in cash dividends
    b) An increase in the net profit margin
    c) A decrease in the credit period offered by the firm's suppliers
    d) A decrease in the credit period offered to the firm's customers
    e) An increase in corporate income tax rates

    © BrainMass Inc. brainmass.com October 1, 2020, 11:25 pm ad1c9bdddf
    https://brainmass.com/business/credit-management-credit-policy-analysis-and-risk/external-finance-movements-variety-cashflow-271939

    Solution Preview

    A - Increase the need for external financing as more cash outflow by paying ...

    Solution Summary

    Brief, one sentence explanations are given in regards to whether each of the options would result in an increase or decrease a firm's need for more external financing.

    $2.19

    ADVERTISEMENT