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Question 5 The forecast of revenue growth is crucially important because many items in the income statement and the balance sheet are closely related to

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Question 5 The forecast of revenue growth is crucially important because many items in the income statement and the balance sheet are closely related to revenue. In addition to historical patterns and industry trends, a company's growth can also be constrained by its financing. When a forecast is overly optimistic in the sense that the expected revenue growth is unrealistically high, what problems regarding financing might occur? Discuss. Word limit: 200 words. (14 marks)

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