(a).Suppose you are attempting to construct a forecast for PQR Corporation for the next 5 years.

Which of the following - in lieu of additional information - could you most likely ignore in the forecast period?

Group of answer choices

• Property Plant & Equipment
• Accounts Payable
• Extraordinary Gains & Losses
• Short Term Debt

(b)Suppose PQR Corporation expects growth in Sales of roughly 9% per year during the Forecast Period.The projected Return on Invested Capital is 12% during the same period and the PQR Corp plans to pay out all of their earnings in Dividends during the forecast period.Without additional Financial Planning, the most likely outcome of the forecast would be -

Group of answer choices

• PQR would likely have relatively stable levels of Leverage & Liquidity during the forecast period
• PQR would likely pile up Debt during the forecast period
• PQR would likely pile up Cash over the forecast period
• PQR would show increasing ROIC over the forecast period