State if each of the following would increase or decrease AFN. A high growth rate. A low capital intensity ratio. A low spontaneous liabilities-to-sales ratio. A high profit margin. A low payout ratio.

State if each of the following would increase or decrease AFN. A high growth rate. A low capital intensity ratio. A low spontaneous liabilities-to-sales ratio. A high profit margin. A low payout ratio.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 12QTD

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Question

State if each of the following would increase or decrease AFN.

A high growth rate.
A low capital intensity ratio.
A low spontaneous liabilities-to-sales ratio.
A high profit margin.
A low payout ratio.

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