The First Step in Constructing a Financial Planning Model Is

question 80

Multiple Choice

The first step in constructing a financial planning model is to:

• A) determine the mix of securities that the company will need to issue.
• B) determine the amount of external financing that is needed.
• C) determine what additional fixed assets the company will need.
• D) project future cash flows from operations.

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Definitions:

Granite

A very hard, granular, crystalline, intrusive igneous rock consisting mainly of quartz, mica, and feldspar; commonly used in buildings for its strength and durability.

Nuclear Fusion

The combination, or fusion, of two nuclei to form a heavier nucleus, in the process releasing a large amount of energy.

Atoms

The basic units of matter, consisting of a nucleus surrounded by electrons.

Hydrogen

The simplest and most abundant element in the universe, consisting of just one proton and one electron, and a primary component in water and organic compounds.