The Inputs Used in Building Financial Planning Models Include

question 53

Multiple Choice

The inputs used in building financial planning models include

• A) financial statements, sales forecasts, and a firm's investment and financial policy decisions.
• B) pro forma statements, sales forecasts, and macroeconomic variables.
• C) pro forma statements, sales forecasts, and financing decisions.
• D) None of these

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Definitions:

Compounded Monthly

A process where interest earnings are calculated and added back to the main balance every month, aiding in the growth of the investment.

Annuity Payment

A periodic payment received from an annuity investment, typically for retirement income.

Final Payment

the last payment that completes the payoff of a loan or financial obligation.

Compounded Monthly

The method of calculating interest where the earned interest is added to the principal balance each month.