Which of the following statements about the process of forecasting a firms pro forma Financial Statements is NOT true?

	1.	If a firm wishes to grow at a rate in excess of its sustainable growth rate, g*, its only option is to raise additional external financing
	2.	The focus of the forecasting process should be on the firms sustainable (core) earnings
	3.	A firms sustainable growth rate is based on its current level of profitability and its current dividend policy
	4.	In the ideal, year-by-year forecasts should be made up until the point in time when the firm reaches a steady state growth rate