Chapter 3: Developing a Long-term Financial Plan
The following sections are included:
Introduction
Overview of Financial Planning
Forecasting Growth Rates and Outside Financing
Internal growth rate
Sustainable growth rate
Effects of unexpectedly higher (or lower) growth
Forecasting External Financing Needs
Percentage of Sales Method
Percentage of sales analysis of JNJ
Risk Considerations
Ex-post return and risk for a single asset
Types of Risk and Their Effect on Returns
Business risk
Degree of operating leverage
Financial risk
Degree of financial leverage
Total risk
The value of financial statement analysis
Summary