Pro forma statements used in financial planning


Question 1: Describe three ways that pro forma statements are used in financial planning.

Question 2: Explain the steps in financial forecasting.

Question 3: Briefly explain how to forecast financial statements using the forecasted financial statements approach. Be sure to explain how to forecast interest expenses.

Question 4: How is it possible for an employee stock option to be valuable even if the firm's stock price fails to meet shareholder's expectations?

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