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Fundamentals of Corporate Finance, 4/c/e

Fundamentals of Corporate Finance, 4/e

Stephen A. Ross, Massachusetts Institute of Technology
Randolph W. Westerfield, University of Southern California
Bradford D. Jordan, University of Kentucky
Gordon S. Roberts, York University

Long-Term Financial Planning and Corporate Growth

Learning Objectives

After studying this chapter in the textbook, you should be able to:

Outline the goals of financial planning.

Identify what planning can accomplish.

List the ingredients of a financial planning model.

Prepare a financial plan according to the percentage of sales approach.

Compute the external financing needed (EFN) for a company.

Define the internal growth rate for a company and distinguish it from EFN.

Define and compute the sustainable growth rate.

Explain why it is important that a company not grow faster than its sustainable growth rate on a regular basis.

2002 McGraw-Hill Higher Education
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