Explain the impact a lower growth in sales could have on the dividend policy and retained earnings for the company featured in the case study.
Prompt
Read the Assessing a Company’s Future Financial Health case study, then write a response.
Specifically, you must address the following rubric criteria:
• Systematic and Unsystematic Risk: Explain the differences between systematic and unsystematic risk.
• Financial Risks: Describe the potential impacts of the following types of financial risk on the company featured in the case study:
o Interest rate risk
o Economic risk
o Credit risk
o Operational risk
• Lower Growth Impact: Explain the impact a lower growth in sales could have on the dividend policy and retained earnings for the company featured in the case study.
• Higher Growth Impact: Explain the impact a higher growth in sales could have on the dividend policy and retained earnings for the company featured in the case study.
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