Building a model for long-term forecasting reveals points in the future where the firm will have
A)excess cash that can be used for dividends, debt repayment, or share repurchases.
B)a need for expanding property, plant and equipment to meet increases in capacity.
C)cash needs that must be funded with external financing.
D)all of the above.

Question

Quizplus · Accepted Answer

Building a long-term forecasting model provides insights into the future financial needs of the firm, including excess cash that can be used for dividends, debt repayment, or share repurchases, the need for expanding property, plant and equipment to meet increases in capacity, and cash needs that must be funded with external financing.

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