Assignment:
Suppose a firm makes the following policy changes. If the change means that external, nonspontaneous financial requirements (AFN) will increase, indicate this by a (+); indicate a decrease by a (-); and indicate indeterminate or no effect by a (0). Think in terms of the immediate, short-run effect on funds requirements.
a. The dividend payout ratio is increased. __________
b. The firm decides to pay all suppliers on delivery, rather than after a 30-day delay, to take advantage of discounts for rapid payment. __________
c. The firm begins to sell on credit (previously all sales had been on a cash basis). __________
d. The firm’s profit margin is eroded by increased competition; sales are steady. __________
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.