Question: Executive Papers financial manager believed that revenues in 2000 would rise by as much as 50 percent or by as little as 10 percent. Recalculate

Executive Paper’s financial manager believed that revenues in 2000 would rise by as much as 50 percent or by as little as 10 percent. Recalculate the pro forma financial statements under these two assumptions. How does the rate of growth in revenues affect the firm’s borrowing requirement?

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