Chapter04-Long-TermFinancialPlanningandGrowth4-Chapter04Long-TermFinancialPlanningandGrowthMultipleChoiceQuestions1.Philisworkingonafinancialplanforthenextthreeyears.Thistimeperiodisreferredtoaswhichoneofthefollowing?A.financialrangeB.planninghorizonC.planningagendaD.short-runE.currentfinancingperiod2.AtlasIndustriescombinesthesmallerinvestmentproposalsfromeachoperationalunitintoasingleprojectforplanningpurposes.Thisprocessisreferredtoaswhichoneofthefollowing?A.conjoiningB.aggregationC.conglomerationD.appropriationE.summation3.Whichoneofthefollowingtermsisappliedtothefinancialplanningmethodwhichusestheprojectedsaleslevelasthebasisfordeterminingchangesinbalancesheetandincomestatementaccountvalues?A.percentageofsalesmethodB.salesdilutionmethodC.salesreconciliationmethodD.common-sizemethodE.trendmethod4.Whichoneofthefollowingtermsisdefinedasdividendspaidexpressedasapercentageofnetincome?A.dividendretentionratioB.dividendyieldC.dividendpayoutratioD.dividendportionE.dividendsection5.Whichoneofthefollowingcorrectlydefinestheretentionratio?A.oneplusthedividendpayoutratioB.additiontoretainedearningsdividedbynetincomeC.additiontoretainedearningsdividedbydividendspaidD.netincomeminusadditionstoretainedearningsE.netincomeminuscashdividends6.Whichoneofthefollowingratiosidentifiestheamountofassetsafirmneedsinordertogenerate$1insales?A.currentratioB.equitymultiplierC.retentionratioD.capitalintensityratioE.payoutratio7.Theinternalgrowthrateofafirmisbestdescribedasthe:A.minimumgrowthrateachievableassuminga100percentretentionratio.B.minimumgrowthrateachievableifthefirmmaintainsaconstantequitymultiplier.C.maximumgrowthrateachievableexcludingexternalfinancingofanykind.D.maximumgrowthrateachievableexcludinganyexternalequityfinancingwhilemaintainingaconstantdebt-equityratio.E.maximumgrowthrateachievablewithunlimiteddebtfinancing.8.Thesustainablegrowthrateofafirmisbestdescribedasthe:A.minimumgrowthrateachievableassuminga100percentretentionratio.B.minimumgrowthrateachi