The first step involved in predicting financing needs is

Question

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The first step in predicting financing needs is to forecast the firm's sales revenues and expenses over the planning period. This will help determine the level of investment in current and fixed assets that are needed to support the projected sales, which is the second step. The third step involves determining the financing needs throughout the planning period, which requires knowledge of the projected cash flow and funding requirements. Estimating the cost of debt comes later in the process, after the financing needs have been determined.

The First Step Involved in Predicting Financing Needs Is