Overview of financial planning

Business

1 answer:

VMariaS [17]3 years ago

6 0

Answer:

1. Operating plan.

2. Operating plan.

3. Financial plan.

4. Dividend policy.

5. B and C.

Explanation:

1. Operating plan: provides detailed implementation guidance for a firm's operations, as well as a forecast of the company's expected future free cash flows.

2. Operating plan: provides the inputs necessary for a risk management evaluation using sensitivity analysis, scenario analysis, or simulations.

3. Financial plan: Is based on knowledge of the amount of funds necessary to compensate the firm's shareholders, and the mix of debt and equity capital used to finance the firm.

4. Dividend policy: sets forth specific targets for cash or share distributions to the firm's shareholders.

Capital structure: describes specific targets for the mix of debt and equity used to finance a firm.

Financial planning can be defined as the process of estimating the amount of capital required for the smooth operations of the business and determine how to achieve the firm's set goals and objectives.

Hence, the following statements are true about financial planning;

I. Once a firm's forecasted financial statements are prepared, the firm must determine how much capital it will need to support these plans.

II. Management must monitor operations after implementing a financial plan to detect deviations from the plan and adjust accordingly.

You might be interested in

Whats better, be an hour early to work, or 15 minutes late?

statuscvo [17]

An hour early to work. if you are 15 minutes late your fired. i go by if you early your on time. if your on time your late. if you late your fired.

3 0

3 years ago

Which of the following is not a cost created by high inflation? A. Inflationary impacts are not distributed evenly across the

dybincka [34]

Answer:

The correct answer is the option A: inflationary impacts are not distributed evenly across the population, therefore, inflation causes the economy to redistribute income across households.

Explanation:

To begin with, inflation is the name that receives, in an economic field, the term that refers to the situation where the economy of a country decreases its purchasing power per unit of money causing a loss of real value in the unit of exchange. Moreover, it affects the economy in many negative ways, such as the reductions of the real value of the wages, causing a more difficult situation for the people to buy the primary groceries. Furthemore, it also increases the opportunity cost of holding money, causing to discourage investment and savings.

Therefore, that it is understandable that the correct answer is the option A, due to the fact that a high inflation do not cause a redistribution in the income of the economy to the households, actually it causes the whole oppositve impact.

7 0

3 years ago

The company's wacc is 10. 5%. what is the irr of the better project? (hint: the better project may or may not be the one with th

Simora [160]

The better Project is Project S having a NPV of $17.968 and IRR of 12.10 %

IRR:

An approach to capital budgeting that is used to assess the profitability of a project is the discounted payback time. Internal rate of return is one of these capital planning strategies (IRR).
This rate of return corresponds to the point at which a project's net present value equals zero. Since it does not account for any outside forces, such as inflation, they call it internal.

The calculator's capabilities will be utilized to determine the IRR,

Project S