Any forecast of financial requirements involves determining

Assignment Help Financial Management
Reference no: EM13721754

Which of the following statements is correct?

Select one:

a. Any forecast of financial requirements involves determining how much money the firm will need and is obtained by adding together increases in assets and spontaneous liabilities and subtracting operating income.

b. The projected balance sheet method of forecasting financial needs requires only a forecast of the firm's balance sheet. Although a forecasted income statement helps clarify the financing needs, it is not essential to the balance sheet method.

c. Because dividends are paid after taxes from retained earnings, dividends are not included in the projected balance sheet method of forecasting.

d. The projected balance sheet method forces recognition of the fact that new financing creates additional financial obligations. For instance, new financing can increase expenses which can actually decrease taxes but increase the projected financial need.

e. Financing feedback describes the effect on the firm's stock price of the announcement that the firm will sell new equity or debt to raise needed capital.

Reference no: EM13721754

Questions Cloud

High degree of leverage then a small change in sales results : If a firm has a high degree of leverage then a small change in sales results in
What will be the price of the bond : XYZ has a $1,000 Face Value 5% Coupon Bond (paid semi-annually). The bond is selling for $949 today and matures in 8 years. (The YTM today is 5.8%) A) What will be the price of the bond in 1 year if the YTM investors demand is still 5.8%? $_________?..
Face value bonds outstanding : Best Western has $1,000 face value bonds outstanding. These bonds pay interest semi-annually, mature in 10 years, and have a 5 percent coupon. The current price is quoted at 95.5. What is the YTM? %?
What is the current price of this bond : A $1,000 face value bond currently has a yield to maturity of 4.8 percent. The bond matures in five years and pays interest semi-annually. The coupon rate is 4 percent. What is the current price of this bond?
Any forecast of financial requirements involves determining : Any forecast of financial requirements involves determining how much money the firm will need and is obtained by adding together increases in assets and spontaneous liabilities and subtracting operating income. The projected balance sheet method of f..
Amendment to become part of the constitution : Include in your paper the steps necessary for this Amendment to become part of the Constitution. Discuss good and bad outcomes if such an Amendment were adopted. Use a minimum of three sources.
Financial planning process after firm develop sales forecast : What is the next step in the financial planning process after a firm develops a sales forecast?
Made a gain or loss due to the exchange rate change : Your Boston headquartered manufacturing company, Wruck Enterprises, obtained a 50 million-peso loan from a Mexico City bank last month to fund the expansion of your Monterrey, Mexico plant. When you took out the loan the exchange rate was 10 US cents..
Define your own interpretation of the community : Define your own interpretation of the Community-Based Participatory Research (CBPR) model. If you were about to introduce this model to a group of public health students, how would you define the CBPR model.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the current earnings per share

Calculate the firms EOQ for the item of inventory and what is the firms total cost based upon the EOQ calculated above - Calculate the current earnings per share

  Risk and return risk and return coefficient of

risk and return coefficient of variation ltbrgtbased on the following information calculate the coefficient of

  Evaluating bfsi entry in the proposed foreign markets

Identify the key criteria and considerations that need to be taken into account in evaluating BFSI entry in the proposed foreign markets.

  Determine which form of contracting benefit your business

Image your small business that produces very small remote control aircraft capable of long sustained flights. You are ready to expand your business by competing for Department of Defense (DoD) contracts.

  What are the financial statements presented in the report

What are the financial statements presented in the report and how many disclosures are in the report and what was the net income of the company? Explain the revenues and the expenses components.

  What is the expected return on a portfolio

What is the expected return on a portfolio that is equally invested in the two assets? If a portfolio of the two assets has a beta of .5, what are the portfolio weights? If a portfolio of the two assets has an expected return of 8 percent, what is it..

  Financial reporting environment for the quarter

Prepare a 2 page newsletter that identifies and summarises developments and changes in the financial reporting environment for the quarter from January to March 2013.

  Conduct a gap analysis for anthonys orchard

Conduct a gap analysis for Anthony's Orchard and devise a benchmarking review for Anthony's Orchard. To do this, discuss recommended strategies and measures that will be useful to measure progress towards the objective in your gap analysis.

  Identify the macro sovereign risks

Identify the macro sovereign risks and problems and their potential effect on QN's competitive advantage (in fact QN has not established what its competitive advantage really is, though it has been very successful in the UK and the euro area).

  For your final paper you will choose one of the health care

the final paper 8-10 pages excluding title and reference pages should demonstrate understanding of the reading

  Investor has created a hedge-using appropriate terminology

An investor has been following MSFT since its inception. He was an employee of the company for many years but does not own stocks or options in any company. He is concerned that the value of MSFT will unacceptably decline below $30. He therefore buys..

  Calculate the dollar amount of purchases

Calculate the dollar amount of purchases and then using that result , calculate the dollar amount of cash paid to suppliers using the following data

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd