The Asset and Liability Side of a Pro Forma Balance

question 27

Multiple Choice

The asset and liability side of a pro forma balance sheet projection will not balance,in general,unless we make assumptions about how ________ and ________ will grow with sales.

• A)dividends,equity
• B)coupons,debt
• C)debt,equity
• D)dividends,preferred stock
• E)accounts receivable,accounts payable

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Definitions:

Discount

A reduction applied to the regular price of goods or services, typically offered to prompt payment or to certain customers.

Bonds Payable

Long-term liabilities representing money owed by a company to bondholders, to be repaid by a specified date.

Issue Price

Issue price is the cost at which new securities are offered to the public by an issuer, determining the initial capital raised from the financial market.

Par Value

The nominal or face value of a security as indicated by the issuer.