In a financial plan, how is the amount of borrowing
determined?
A.In direct proportion to sales growth
B.By...
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Finance
In a financial plan, how is the amount of borrowingdetermined?
A.In direct proportion to sales growth
B.By the needed increase in fixed assets
C.By the increase in total assets minus the increase in cash
D.By management's D/E decision
PLEASE explain what is D/E decision
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All the options listed are used to finalize a financial plan while the managements DebtEquity decision is used to determine the amount of borrowing by the business The preparation of financial plan begins with preparation of the sales forecast Once the sales levels are projected the associated direct and indirect expenses are estimated and the Earnings Before Interest Taxes Depreciation and
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