Question

In: Finance

Please answer these questions. Thanks 1. What is the purpose of financial planning? 2. What are...

Please answer these questions. Thanks

1. What is the purpose of financial planning?

2. What are the major decision areas involved in developing a plan?

3. What is the percentage of sales approach?

4. What is the internal growth rate?

6. What is the sustainable growth rate?

7.What are the major determinants of growth?

Solutions

Expert Solution

Purpose of the finance planning
Finance is the lifeblood of the organisation . Without it no organisation can work. Therefore its proper management is must
finance has a cost. So finance management is to take care of keeping cost lower and the other hand its full utilisation
Finance planning is done to make the capital structure maximum so as keep the liquidity of the finance and keep the cost lower.
the optimum capital structure increase the value of the owner equity.
the key factor of finance planing is following
1) requirement=in fiance planning it is must to ensure how much fund is required according to the variious need whether short ter or long term.
2) cost= finance has cost. Therefore in finance planning it is managed to keep such sources which has lowest cost
3) liquidity= finance planning need to arrange fund from that sources which can be liquidated as per need. For long
term need long term fiance sources and for short term fund short term fund sources is arranged.
sales approach and financial planning
sales is major role in sourcing the financing the fund in any firm. For projecting the future cash inflow, correct sales estimation is must.
it can be said that sales factor has the highest role in sourcing the fund required for working capital. In working capital budgeting the sales
provide the regular fund and is major factor.
internal growth rate
this is the highest growth rate a firm can achieved.this highest growth rate is achieved without the external source of fiance. Ie. Without long term debt.
the formula for calculating the the internal growth rate is total retained earning / total assets. Internal growth can be obtained by adding new product line

or expanding the existing business.

for rest of questions please re-post


Related Solutions

Please answer the following questions on the 2008 financial crisis please answer 1-2 paragraphs each. What...
Please answer the following questions on the 2008 financial crisis please answer 1-2 paragraphs each. What was the financial situation that consumed Wall Street and the Federal government in 2008? Which government officials played critical roles in addressing the financial crisis, and how did they address it? How would you critique the ethical culture of Wall Street and those insiders on Wall Street who triggered the financial crisis?    4. Who is to blame? Are there any good guys here?
Please answer questions completely in short answer format! Thanks 1. what are 4 sumilaraties between smooth...
Please answer questions completely in short answer format! Thanks 1. what are 4 sumilaraties between smooth and skeletal muscles? What are 4 differences? 2. what is role of ATP in a muscle cell? (reference either smooth or skeletal muscle) 3. how are aerobic respiration and fermentation similar? Different? 4. what do PTH and calcutonin have in common (2 similarities) 5. how does the body maintain calcium homeostasis if Calcitonin does not play a major role in the hunan body? 6....
Please answer questions/short answer form..THANKS...I rate high!! Digestive System 1. What is the benefit of having...
Please answer questions/short answer form..THANKS...I rate high!! Digestive System 1. What is the benefit of having a digestive system with specialized regions? 2. Which orgsns are considered "accessory" to the digestive system? What are their functions? 3. Whst does "extracellular" digestion refer to? Comparative Vertebrate Anatomy ((Bat, Cat, Pigeon & Human Skeletons)) 1. Which parts of the forelimbs are similar to each other? Different? 2. Compare the phalanges (finger bones) of each- how have they become modified in each animal?...
Please answer all questions, thanks 1. Money is defined by economists as: A. All stores of...
Please answer all questions, thanks 1. Money is defined by economists as: A. All stores of value. B. Any liquid asset. C. Legal tender. D. Anything that performs the functions of money. E. Currency and coin. 2. The primary form of money in the modern world is: A. Household and business liabilities. B. The debt issued by the Federal government. C. Coins. D. The deposit liabilities of banks. E. Paper currency. 3. Commodity money is: A. A money that never...
please read and answer this questions please and thanks. CERTIORARI TO THE UNITED STATES COURT OF...
please read and answer this questions please and thanks. CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT Syllabus Held: The Court of Appeals erred in concluding that, when the Department of Housing and Urban Development (HUD) considered alternative sites before redesignating a proposed site for middle-income housing as one for low-income housing it should have given determinative weight to environmental factors such as crowding low-income housing into a concentrated area and should not have considered the...
Please answer the questions as soon as possible. Thanks in advance. Please explain in brief in...
Please answer the questions as soon as possible. Thanks in advance. Please explain in brief in one to two paragraphs and provide graphs. 1. In two paragraphs, describe the sources of the gains from trade and why countries use import tariffs. 2b In two paragraphs, describe how the COVID-19 pandemic has impacted the global macroeconomy and multiple ways it has impacted a specific agricultural commodity market (e.g. corn, beef, wheat).
please answer 1 & 2 thanks! 1) HR and BP responses to submaximal exercise. For this,...
please answer 1 & 2 thanks! 1) HR and BP responses to submaximal exercise. For this, take a few minutes and do a slight job, walk upstairs or some other moderately strenuous activity. Take your heart rate, and describe what else you believe is happening with the circulatory and respiratory system, and why? 2) What role does the circulatory and respiratory system play in maintaining homeostasis, mainly temperature and pH balance
Based on the article pasted below please answer the following questions: 1. The purpose of the...
Based on the article pasted below please answer the following questions: 1. The purpose of the article or problem statement 2. A brief summary of the literature review 3. What are the research questions or hypotheses relevant to "How color affects one's mood"? 4. A basic description of the design/methodology of the research study (if applicable) 5. A report of the findings of the article, and, 6. the value or use of the article in relation to a research project...
Please try to answer as soon as possible. Thanks in advance. Answer the questions true, false...
Please try to answer as soon as possible. Thanks in advance. Answer the questions true, false or uncertain and provide a brief explanation or a graph to defend your answer. 1 a) A change in relative prices will always change a utility maximizing consumer’s marginal rate of substitution. 1b) Competitive firms shutdown production when price falls below the minimum of the average total cost curve. 1c) An increase the price of firms output will always increase the use of an...
Please answer the below questions. Thanks. Kimmswick, Missouri–Illinois 14. What are the gradients of the Mississippi...
Please answer the below questions. Thanks. Kimmswick, Missouri–Illinois 14. What are the gradients of the Mississippi River and of Glaze Creek? 19. Why does Fountain Creek flow some 10 mi south along the floodplain before entering the Mississippi River? What is this feature called?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT