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How do the following factors affect the external financing requirement? For not-for-profit firms, ability to attract contribution capital.
Why is the external financing requirement so important to the planning process? What is the starting point for creating forecasted financial statements?
Why is it necessary for planners to distinguish between volume changes and reimbursement changes?
What are the principal components of the financial forecast? What is the most common time horizon for operating plans?
Why do financial planners need to be familiar with the business’s strategic plan? What is the purpose of a business’s operating plan?
Why is it important to be familiar with the comparative data set? How are KPIs and dashboards used in financial condition analysis?
Why is EVA a better measure of financial performance than are accounting measures such as earnings per share and return on equity?
Briefly, describe some of the problems encountered when performing financial statement and operating indicator analyses.
Which analytical techniques should be used in a complete financial statement analysis?
What advantage do common size statements have over regular statements when conducting a financial statement analysis?
Explain how the Du Pont equation combines several ratios to obtain an overview of a business’s financial condition.
What are two ratios that measure debt management? What are two ratios that measure profitability?
What is the difference between net income and cash flow, and which is more meaningful to a firm’s financial condition?
Briefly, describe these three basic financial statements: (1) income statement, (2) balance sheet, and (3) statement of cash flows.
How does the presence of real options influence the capital budgeting decision? Are decisions made solely on the basis of quantitative factors? Explain your ans
What are the costs and benefits of structuring large capital budgeting decisions in stages rather than as a single decision?
Discuss the advantages and disadvantages of incorporating debt capacity differences in the capital budgeting decision process.
How did Ridgeland’s managers translate the MRI project’s stand-alone risk assessment into a corporate risk assessment?
What are the differences between the certainty equivalent (CE) and risk-adjusted discount rate (RADR) methods for risk incorporation?
What type of risk does it attempt to measure? What type of risk does it attempt to measure?
Is sensitivity analysis a good risk assessment tool? If not, what is its value in the capital budgeting process?
Should managers of investor-owned providers focus exclusively on a project’s market risk? What type of risk is being assessed initially?
Name and define the three types of risk relevant to capital budgeting. How is each type of project risk measured?
When is it appropriate to apply the corporate cost of capital when evaluating a new project proposal? When is it inappropriate?
What are the problems faced by small businesses when estimating the corporate cost of capital?