Corporate Valuation and Governance
Define each of the following terms:
a. Mission statement; corporate scope; statement of corporate objectives; corporate strategies
b. Operating plan; financial plan; sales forecast
c. Spontaneous liabilities; profit margin; payout ratio
d. Additional funds needed (AFN); AFN equation; capital intensity ratio; self supporting growth rate
e. Forecasted financial statement approach
f. Excess capacity; lumpy assets; economies of scale
g. Full capacity sales; target fixed assets/sales ratio; required level of fixed assets
h. Financing feedback effects