True or False: Write T if th statement is correct. If it is not, write F and state the reason briefly. (Please refer to the picture) 4. The preparation of financial plan gets more difficult once capital expenditures are included in theprojected cost5. Sales predictions based on previous sales are considered final in making the financial plan.6. The long-term financial plan need not be congruent to the vision of a business.7. The vision of the business defines its short-term financiai direction.8. Financial goals are broader than financial objectives9. The production schedule is prepared ahead of the sales forecast10. The financial plan is easily prepared and becomes logical if the expected cost and expenses aredetermined first.11. Financial planning is making a forecast on the financial operation of the business.12. The first step in preparing a financial plan is to determine the expected cost and expenses.13. Long-term and short-term financial securities are ordinarily traded in the capital market.14. The sales performance of previous years can serve as the most logical basis in predicting the futuresales of the business.15. The additional funds needed must be determined once sales are expected to remain at a steadylevel

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True or False: Write T if th statement is correct. If it is not, write F and state the reason briefly. (Please refer to the picture)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 2STP

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