Problem 1: Which of the following might indicate the correct choice of a plug figure if a financial plan shows sources of funds to be $100,000 and uses of funds to be $90,000?
a) External debt must increase by $10,000.
b) Dividend payments must decrease by $10,000.
c) Cash balances must increase by $10,000.
d) The capital budget must decrease by $10,000.
Problem 2: Which of the following factors is fixed and thus cannot change for a specific perpetuity?
a) PV of a perpetuity
b)Cash payment of a perpetuity
c) Interest rate on a perpetuity
d) Discount rate of a perpetuity