Several factors affect firms need for external funds

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Several factors affect a firms need for external funds. evaluate the effect of each following factor and place a check next to each factor that is likely to increase a firms need for external capital-AFN. check all that apply.

a. firm increases dividend payout ratio

b. firm inventory turnover decreases, with no effect on the sales forecast.

c. firm improves its production system and increases its profit margin.

accounts payable and accrued liabilities represent obligations that the firm must pay off. Assume everything else holds constant, the firms AFN will

A. increase

B decrease.

Reference no: EM131318914

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