Explain impact of external financing on the additional funds

Assignment Help Financial Management

Reference no: EM13215684

When constructing pro forma financial statements, which of the following steps should be completed first?

a. Forecast next period's balance sheet.

b. Determine the additional funds needed, AFN, to support expected growth.

c. Forecast next period's income statement.

d. Consider the impact of external financing on the additional funds needed (AFN) to determine how much additional interest or dividends must be paid to support expected growth?that is, consider financing feedbacks.

e. Determine whether the firm is operating above or below its operating breakeven point.

Reference no: EM13215684

Questions Cloud

Create value and sustain competitive advantage : How does each company create value and sustain competitive advantage through business strategy and what measurement guidelines is each company using to verify its strategic effectiveness?

How many no. of hydrogen ions are present : how many no. of hydrogen ions are present in 10 millionth part of 1.33 cc of pure water at 25 degree celsius.

What is the standard deviation : what is the standard deviation, mean, and variance of a Poisson distribution with an arrival rate of 21 customers per hour? This is a M/M/1 or M/G/1 service model, and CVa=1(coefficient of variation of arrival).

Calculate the moles and the mass of solute : Calculate the moles and the mass of solute in 250.0 mL of 6.00 M NaOH.

Explain impact of external financing on the additional funds : Consider the impact of external financing on the additional funds needed (AFN) to determine how much additional interest or dividends must be paid to support expected growth?that is, consider financing feedbacks.

Describe an orientation experience : Describe an orientation experience you have had or are familiar with that was effective (or ineffective) in aligning employee behavior with the assigned job.

What is the molarity : Sulfuric acid is a very strong inorganic used in commercial and non-commercial laboratories. What is the molarity of a 70.00 wt % solution of sulfuric acid in water? The density of the solution is 1.6503 g/mL.

Project management strategy : Select one tool, other than MS Project, that you could use in order to manage project costs and scheduling. Next, speculate on the overall different project management strategy that you would apply based on the tool that you have selected

How to allocate total cost among the three purchased assets : Liltua Company pays $375,280 for real estate plus $20,100 in closing costs. The real estate consists of land appraised at $157,040; land improvement appraised at $58,890; and a building appraised at $176,670. Allocate the total cost among the thre..

User Account

All Pages