Why construct financial forecasts

Assignment Help Financial Management
Reference no: EM131543903

Why construct financial forecasts? From a planning perspective, is it necessary to forecast the future as it relates to the organization as well as the industry as a whole? If you were President and CEO of Apple Corporation, would you want to know what the forecast for iPhones would be in the next year, 5 years, and 10 years? Why would this information be important? Explain.

Reference no: EM131543903

Questions Cloud

Discuss about the five factor personality test : Summarize the findings from the online "Five Factor Personality Test" on each of the five dimensions of your personality.
Are you heading for caregiver burnout : Complete the survey and reflect on your own results. Analyze the structure and assumptions behind the assessment.
What is the gamma of an option : What is the Gamma of an option? Why is it preferable to have small Gamma?
What stood out to you about personality assessment practices : Reflect on current research trends that utilize this information and how the interpretation of these findings may vary across cultures
Why construct financial forecasts : Why construct financial forecasts?
Nonconstant growth valuation-how far away is horizon date : Nonconstant growth valuation Holt Enterprises recently paid a dividend, How far away is the horizon date?
Higher moral level than serving oneself : Do you agree it is important for leaders to do the right thing even if no one will ever know about it? Why or Why not?
Constitute an adverse employment action : An employee receives a letter of reprimand that goes in his personnel file but is not demoted and does not suffer any other action.
Philosophies and theories for advanced nursing practice : Explain why it speaks directly to your future practice and give specific examples of how you see it fitting into your new role.

Reviews

Write a Review

Financial Management Questions & Answers

  Dividends are expected to grow at rate

Hughes Co. is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 12 percent and the company just paid a $3.8..

  What will happen to the value of its common stock

Given that a firm's return on equity is 22 percent and management plans to retain 37 percent of earnings for investment purposes, what will be the firm's growth rate? If the firm decides to increase its retention rate, what will happen to the value o..

  What is the effective annual rate for loans

What is the effective annual rate (EAR) for each of the following one-year, $1,000 bank loans? A loan with an APR of 5.8%, compounded monthly. A loan with an APR of 5.8%, compounded annually, that also has a compensating balance requirement of 9.5% (..

  Discuss how betas are measured for individual stocks

Discuss how betas are measured for individual stocks. What is the formula for Financial Leverage? How are dividends paid and how do companies decide on dividend payments?

  What is the firms breakeven point in units

Cranberry Wood Products Inc. spends an average of $9.30 in labor and $12.60 in materials on every unit it sells. Sales commissions and shipping amount to another $3.10. All other costs are fixed and add up to $141,000 per month. What is Cranberry's c..

  Compute the realized rate of return for an investor

Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called.

  Consultant to handle project valuation

Dave Inc. recently hired you as a consultant to handle project valuation. You have obtained the following information. The firm has 2 million shares of common stock outstanding. The common stock just paid a dividend of $1. It is expected to grow by 3..

  Provide a list of the criteria and explain how it will ensur

Provide a list of the criteria and explain how it will ensure the curriculum and instructional methods utilized in your preschool are developmentally appropriate.

  Loan preapproval and low-interest loan

The lowest payment does not necessarily mean the best credit plan. If your car loan is a long period of time, you may end up owing more than the car is worth, which is called Negative equity. Low monthly payments. All of these are potential problems...

  Equipment agree with the general ledger

Auditors must confirm that the __________ of Property, Plant, and Equipment agree with the general ledger.

  What level of EBIT will EPS be identical for Plans

Destin Corp. is comparing two different capital structures. Plan I would result in 11,000 shares of stock and $80,000 in debt. Plan II would result in 8,375 shares of stock and $150,000 in debt. The interest rate on the debt is 6 percent. Ignoring ta..

  Target capital structure-what is its cost of common equity

Patton Paints Corporation has a target capital structure of 25% debt and 75% common equity, with no preferred stock. Its before-tax cost of debt is 13% and its marginal tax rate is 40%. The current stock price is P0 = $22.00. The last dividend was D0..

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