By Compiling Pro Forma Statements, Firms Can

Multiple Choice

By compiling pro forma statements, firms can:

A) Ensure that their anticipated rate of growth will in fact occur.
B) Avoid increasing their level of financial leverage while still increasing the growth rate of the firm.
C) See the projected effects of their planned activities.
D) Determine how to grow at a rate that exceeds their sustainable rate of growth without increasing their equity financing.
E) Reduce the daily level of management involvement in the operations of the firm.