Fundamentals of Corporate Finance.

Chapter 18 Long-Term Financial Planning.

1) What two horizons must companies plan for? How long is the short-term?

2) What do the long-term financial planning focus on?

3) Who proposes the capital expenditures and who does the strategic planning?

4) What does strategic planning look at and what approach must be adhered to?

5) How are smaller projects viewed in strategic planning?

6) In the planning process what 3 alternative business plans are considered?

7) What are three reasons financial plans are done?

8) What are the components of a financial planning model?

9) What are some pitfalls in model design?

10) What must managers establish in determining the relationship between the firm's goals and financing?