Gerentology Associates, a highly profitable company, is considering two growth strategies, one that
will achieve sales growth of 20 in one year, and the other that will achieve 20 growth in sales,
but over a 4-year time frame.
Assuming Gerentology Associates uses the percent of sales method,
which of the following statements is true?
A) Discretionary financing needed could be much greater for the slow growth strategy because
interest charges will accumulate on the company's debt.
B) The asset balances at the end of 4 years for strategy two will be much greater than the asset
balances required at the end of year one for strategy one.
C) Discretionary financing needed will be much greater for the 4-year growth strategy.
D) Discretionary financing needed could be much less for the 4-year growth strategy due to
retained earnings.
Question 2
Because financial markets can be extremely volatile, with bond and stock prices changing
significantly from day to day, a firm's management has much greater control over the firm's
operating leverage than over its financial leverage.
Indicate whether the statement is true or false
Growth pattern of stem cells
Seasonal changes in biomass and growth form of benthic algae in the Eel River, California: (a) in ea
Elrathia kingii growth series with holaspids ranging from 16.2 mm to 39.8 mm in length
This headache remedy was “guaranteed” by the drug company; 1906.
Growth Chart
A company that makes environmental measuring devices has calculated their revenue and costs as ...