Quiz Ch 18 – T/F Inclusion of Capital Investment Projects in Financial Plans
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Small capital investment projects are typically excluded from a financial plan.
True or false: Small capital investment projects are typically excluded from a financial plan.
True or false: Financial planning models regularly account for present value and risk factors.
True or false: A common practice in corporate financial planning involves looking ahead for a period of at least 15 to 20 years.
True or false: Factories under full capacity enable sales growth without fixed asset investments, but beyond a point, new capacity and assets are required.
True or false: Financial planning should aim to reduce risk.
True or false: Scenario analysis can be integrated into the financial planning process.
True or false: The core objective of financial planning is to enhance future cash flow and earnings forecasts.
True or false: Financial planning relies on accurate and ongoing forecasting.
In short-term financial planning, what is the typical time horizon that is usually NOT exceeded?
What characterizes the sustainable growth rate, in terms of ROE, payout ratio, the plowback ratio, and its relationship with the internal growth rate?