BUSINESS FINANCE I Dersi Financial Planning and Control soru detayı:

PAYLAŞ:

SORU:

What are the assumptions of financial planning?


CEVAP:

The planning process should be designed to be revised periodically to reflect the effects of those changes to the financial plans. The assumptions used may be:

  • The effectiveness and length of cash conversion cycle

  • The sales and collection policies,

  • Capital budgeting techniques,

  • The cost of capital and its revisions

    depending on the financial circumstances,

  • Target capital structure,

  • The cash dividend policy,

  • The tendency to finance the working capital

    needs by short-term borrowings