B. operating at the financial break-even point.
C. facing hard rationing.
D. operating with zero leverage.
A cash concentration account:
A. is frequently used as a source of funds for short-term investments.
B. cannot be used to cover a compensating balance requirement.
C. cannot be used to transfer funds into zero-balance accounts.
D. is generally the only bank account a firm needs to efficiently manage its cash.
E. is another name for a controlled disbursement account.
All else constant, which one of the following will increase the internal rate of growth?
A. decrease in the retention ratio
B. decrease in net income
C. increase in the dividend payout ratio
D. decrease in total assets
E. increase in costs of goods sold
Lester's Frozen Foods just paid out $0.50 a share to its shareholders. The cash for these
payments came from a large sale of assets, not from any earnings of the firm. What are
these payments to shareholders called?
E. stock splits