Building a model for long-term forecasting reveals points in the future where the firm will need ________ when retained earnings are not enough to fund planned future investments.
A)external financing
B)stock dividends
C)dividend payments
D)mergers
E)large cash reserves

Question

Quizplus · Accepted Answer

If the forecasting model reveals that retained earnings will not be enough to fund future investments, the firm will need to look for external financing options such as loans or issuing bonds to raise capital. Stock dividends, dividend payments, and mergers may not necessarily provide the necessary funding for future investments. Large cash reserves may be helpful but may not always be sufficient to cover the costs of large-scale future investments.

Building a Model for Long-Term Forecasting Reveals Points in the Future