Factors That Affect AFN
Not what you're looking for?
Evaluate the effect of each of the factors listed below by itself and place a check next to each factor that is likely to increase a firm's need for external capital. Place a check next to each factor that increase a firm's AFN.
The firm improves its production system and increase its profit margin
The firm increases its dividend payout ratio.
The firm's forecast sales is unexpectedly increased.
The firm previously thought its fixed assets were being operated at full capacity, but now it learns that it actually has excess capacity.
The firm switches its supplier for the majority of its needed raw materials. The new supplier offers more favorable credit terms and thus extends more trade credit to the firm.
The firm's inventory turnover decreases, with no effect on the sales forecast.
Purchase this Solution
Solution Summary
The solution evaluates the effect of different factors that are likely to increase a firm's need for external capital.
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.