To fully account for financing feedbacks, all steps in the projected balance sheet method should be repeated until _____.
A) the financing feedbacks equal zero
B) the spontaneously generated funds equal one
C) the additional funds needed equal zero
D) the degree of financial leverage equals one
E) the revenue equals the expenses

Question

Quizplus · Accepted Answer

The projected balance sheet method is repeated until the additional funds needed (AFN) equal zero, indicating that the company has accounted for all financing feedbacks and balanced its financial projections.

To Fully Account for Financing Feedbacks, All Steps in the Projected