Are the following statements true or false? Please explain briefly. a. Financial forecasting helps management anticipate differences

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Are the following statements true or false? Please explain briefly.

a. Financial forecasting helps management anticipate differences between actual and sustainable growth rates and develop contingency plans for managing those differences.

b. If the ratio debt to equity cannot be further increased AND issuing new equity or paying dividends is not an option AND there are neither economies nor diseconomies of scale, the sales growth rate of a firm is limited by ROE.

c. Rapidly growing firms are more likely to face liquidity problems if their net margin is small and they have a long cash-to-cash cycle.

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Practical Finance For Operations And Supply Chain Management

ISBN: 9780262043595

1st Edition

Authors: Alejandro Serrano, Spyros D. Lekkakos, James B. Rice

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