True or False? AFN funding must come from internal fund sources like retained earnings.
Ans. True
AFN MEANS ADDITIONAL FUND NEEDED to expand the operation or sales of the firm. So the formula is,
Projected additional assets - increase in liability - increase in retain earnings. If answer in negetive means project will earn profit which can be invested in other unit of firm.
True or False? AFN funding must come from internal fund sources like retained earnings.
True or False? Sources of external funding include issuing stock and bonds.
rate sensitive funding sources at a bank are termed core deposits. true or false
4. The cost of retained earnings True or False: It is free for a company to raise money through retained earnings, because retained earnings represent money that is left over after dividends are paid out to shareholders. True False The cost of equity using the CAPM approach The current risk-free rate of return (rrF) is 4.67% while the market risk premium is 5.75%. The Allen Company has a beta of 1.56. Using the capital asset pricing model (CAPM) approach, Allen's...
4. The cost of retained earnings True or False: It is free for a company to raise money through retained earnings, because retained earnings represent money that is left over after dividends are paid out to shareholders. False O True The cost of equity using the CAPM approach The current risk-free rate of return (rRF) is 4.67% while the market risk premium is 6.17%. The D'Amico Company has a beta of 0.92. Using the capital asset pricing model (CAPM) approach,...
True or False: It is free for a company to raise money through retained earnings, because retained earnings represent money that is left over after dividends are paid out to shareholders. O False True The cost of equity using the CAPM approach The current risk-free rate of return (rf) is 4.23%, while the market risk premium is 6.63%. the Roosevelt Company has a beta of 0.78. Using the Capital Asset Pricing Model (CAPM) approach, Roosevelt's cost of equity is The...
3) Retained earnings will be increased by the amount in the dividend account (2pts True False
True or False: During the closing process, retained earnings is closed to the dividends account.
during the closing process retained earnings is closed to the dividends account true or false
4. The cost of retained earnings True or False: It is free for a company to raise money through retained earnings, because retained earnings represent money that is left over after dividends are paid out to shareholders. False True The current risk-free rate of return is 4.60% and the current market risk premium is 5.70%. Green Caterpillar Garden Supplies Inc. has a beta of 1.56. Using the Capital Asset Pricing Model (CAPM) approach, Green Caterpillar's cost of equity is Cute...
True/False Retained earnings are excluded in the financing activity since they were already counted within the firm’s net income.