Question: Explain the basic idea behind the percent of sales method for forecasting
Explain the basic idea behind the percent-of-sales method for forecasting companies' financial statements.
Answer to relevant QuestionsWhat is the most important variable in the percent-of-sales forecasting method? Explain why. Write brief comments regarding the level and trend in the following forecasted metrics. Note how the forecasting assumptions you chose in Question 2 are affecting the pro forma metrics. a. Operating margin b. EBIT c. ...Provide a technical explanation of why portfolio risk gradually becomes all systematic (market) as the number of securities in the portfolio (n) gets large. Before performing any calculations, do you think that Deere and Intel would be good stocks to combine into a portfolio? (Explain.) Before performing any calculations, do you think that CVX and YUM would be good stocks to combine into a portfolio? (Explain.)
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