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Which of the Following Is Not a Step in Financial

Question 10

Multiple Choice

Which of the following is not a step in financial forecasting using the percentage of sales method?


A) Modify or iterate until the forecast makes sense.
B) Determine the financial policy variables of interest.
C) Set all non-financial policy variables as a percentage of sales.
D) Extrapolate the balance sheet based on the percentage of sales.
E) Estimate sustainable growth rate using return on equity times proportion of earnings retained.

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