Which of the following is the most common assumption when determining the terminal sales growth rate?

It should be greater than the long$-$run forecast of GDP growth rate.

It should be greater than the cost of capital.

It should be equal to the long$-$run forecast of GDP growth rate.

It should be equal to the cost of capital.

It should be greater than the inflation rate.

Question $9$

Which of the following items is most likely to be forecasted as a percentage of total assets?

Cash

Inventories

Accounts payable

Investments in marketable securities

Debt

Question $10$

The forecasting process begins with which of the following items?

forecasting sales.

forecasting ending cash balance.

forecasting net income.

forecasting operating cash flows.