BA350 Week 3 Assignment A+ Promised

Feb 3rd, 2012
Studypool Tutor
Grantham University
Course: BA350
Price: $40 USD

Tutor description

BA350 Week 3 Assignment A+ Promised

Word Count: 540
Showing Page: 1/6
Week 3Chapters 12 QuestionsQuestion 12-3Financial planning and forecasting are two very important tasks in venturing or adding additional capital to the business, thus these steps must not be skipped. Forecasting financial statements under alternative operating plans in order to determine the amount of capital needed to support the plan which is the Operating Assumption. Financial Policy Assumption which is to forecast the funds that will be generated internally and identify sources from which required external capital can be raised. These two assumptions produce in the formula of Additional Funds needed (AFN).The AFN equation is easy to use, and an analyst is able to project funds requirements quickly, bypassing the need to construct pro forma income statements and balance sheets. The equation method also permits quick recalculation of AFN with changes in the assumptions, and in addition, other variables in the equation can be readily solved for given a target AFN. But some potential disadvantages are as follows:It ignores economies of scale in asset utilization. Costly assets are assumed to be purchased incrementally. Can substantially under- or overstate state funds requirements, because the net profit margin and retention ratio are assumed constant from the base period.Question 12-5Self-supporting growth rate is the maximum the growth rate the firm could achieve if it had no excess to external capital. This rate can be found as the value of g that, when use

Review from student

Studypool Student
" AMAZING as always! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1822 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors