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  3. in a financial plan, how is the amount of borrowin

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

Answer & Explanation Solved by verified expert
4.0 Ratings (621 Votes)
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    See Answer
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