Building a model for long-term forecasting reveals points in the future where the firm will need ________ when retained earnings are not enough to fund planned future investments.
A)mergers
B)external financing
C)stock dividends
D)dividend payments

Question

Quizplus · Accepted Answer

Long-term forecasting helps a firm identify future investment needs, and retained earnings may not be enough to fund these investments. In such cases, external financing, such as debt or equity financing, may be required to fund these investments. Mergers, stock dividends, and dividend payments are not directly related to funding future investments in the firm.

Building a Model for Long-Term Forecasting Reveals Points in the Future