13. Which of the following is not one of the four primary factors that influence...

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13. Which of the following is not one of the four primary factors that influence capital structure decisions? a. The firm's business risk. b. The firm's tax position. c. The firm's financial flexibility. d. The firm's inventory valuation method. e. The firm's managerial attitude. 14. Which of the following statements related to Financial Statement Forecasting is correct? a. One of the key steps in the development of pro forma financial statements is to identify those assets and liabilities which increase spontaneously with net income. b. The first, and most critical, step in constructing a set of pro forma financial statements is establishing the sales forecast. c. Pro forma financial statements as discussed in the text are used primarily to assess a firm's historical performance. d. All else equal, if a firm operates at full capacity, the greater its payout ratio, the less additional funds that will be needed for a particular growth in sales. e. The projected balance sheet forecasting method produces accurate 1 results when fixed assets are lumpy and when economies of scale are present

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