FIN 571 TUTOR Let's Do This /fin571tutor.com FIN 571 TUTOR Let's Do This /fin571tutor.com | Page 11

20. The external funds needed (EFN) equation projects the addition to
retained earnings as:
21. Which account is least apt to vary directly with sales?
accounts payable
inventory
22.
The Wintergrass Company has an ROE of 15.1 percent and a payout ratio
of 40 percent.
What is the company’s sustainable growth rate? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
23. If the Hunter Corp. has an ROE of 7 and a payout ratio of 15 percent,
what is its sustainable growth rate?(Do not round intermediate calculations
and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
24. The length of time between the acquisition of inventory and its sale is
called the:
operating cycle.
25. The most common means of financing a temporary cash deficit is a:
long-term secured bank loan.
long-term unsecured bank loan.
short-term secured bank loan.
short-term issue of corporate bonds.
short-term unsecured bank loan.
26. Consider the following financial statement information for the Rivers
Corporation: