January 2017
Beginner
500 pages
147h 53m
English
In this chapter, we survey the financial planning process. A firm’s financial plan is generally divided into two components: a short-term financial plan, which spans from several months up to one year, and a long-term financial plan, which spans up to five years. The primary objective of both short- and long-range financial planning is the estimation of the firm’s future financing needs. Having some idea about what the firm’s financing requirements will be before the need arises allows the firm’s management to seek out financing with the most advantageous terms possible. However, there is another reason to engage in financial planning: Simply engaging in the financial planning process forces managers to ...
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