The asset and liability side of a pro forma balance sheet projection will not balance, in general, unless we make assumptions about how ________ and ________ will grow with sales.
A) dividends, equity
B) coupons, debt
C) debt, equity
D) dividends, preferred stock

Question

Quizplus · Accepted Answer

In order to balance the asset and liability side of a pro forma balance sheet projection, we need to make assumptions about how debt and equity will grow with sales. Dividends, coupons, and preferred stock are not relevant to balancing the balance sheet.

The Asset and Liability Side of a Pro Forma Balance