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The Asset and Liability Side of a Pro Forma Balance

question 17

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.


Definitions:

Bond Discount

The difference between the selling price of a bond and the bond’s face value when the bond is sold for less than par.

Coupon Rate

The rate of interest a bond pays annually, calculated as a percentage of its face value.

Call Feature

A provision in a bond agreement or other loan instrument that allows the issuer the option to repay the borrowed funds prior to the security's maturity date under specified conditions.

Worldview

A comprehensive perspective from which one sees and interprets the world and their environment, encompassing beliefs, values, and attitudes.

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