Quiz Ch 18 – Incorporating Current Financial Statements in Financial Plans
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Where would the firm’s financial statements typically be integrated into a financial plan?
Where would the firm’s financial statements typically be integrated into a financial plan?
What would lead to an improvement in the sustainable growth rate?
What is the initial step in creating a financial planning model?
Which statement is accurate if planners anticipate a 20% increase in sales with a constant profit margin of 10% and a 30% payout ratio?
What sets financial planning apart from forecasting?
What does the fact that additions to fixed assets are less consistent in size compared to additions to current assets suggest?
How can the relationship between net working capital (NWC) and sales be best described?
What will happen to the cost of goods sold if sales revenues are expected to increase by 20% next year in a percentage-of-sales model where the cost of goods sold is projected to stay at 80% of sales?
Which is NOT a common rationale for the development of financial plans?
Why do planners frequently suggest entering a market for ‘strategic’ motives?