Q5 C. (20 Marks) a) Explain whether the following is True or False with short explanation (10 Marks) 1) Financial Planning should attempt to minimize risk 2) The primary aim of financial planning is to obtain better forecasts of future cash flows and earnings. 3) Financial planning is necessary because financing and investment decisions interact and should not be made independently. 4) Firm's planning horizons rarely exceeds three years. 5) Individual capital investment projects are not considered in a financial plan unless they are very large. 6) Financial planning requires accurate and consistent forecasting. 7) Financial planning models should include as much detail as possible. 8) Dividends are management decision and vary directly with sales. 9) Notes payable, long term debt and equity generally do not vary with sales because they depend on management decisions about capital structure. 10)The internal growth rate tells us how much the firm can grow assets using retained earnings as the only source of financing. mdb