FINA 2700 Lecture Notes - Lecture 9: Retained Earnings

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What is financial planning: best case assume everything goes right, normal growth what will realistically happen, plan of retrenchment worst case scenario, need to know all three for a project. Financial planning methods: inputs what you have right now, most important input variable is the sales, have all the information and then change one to predict for future, ex. Change sales to forecast future sales: cheese example, how much should be the dividend, equity was 1200 and became 1320 so dividend is going to be.

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