9.1 Chapter Nine: Learning Outcomes

Learning Outcomes

In this chapter, you will:

  • Define, in words, both the “Free Cash Flow” and “External Funds Needed” Models
  • Consider, both mathematically and in words, each element of the two formulae
  • Forecast, given assumptions, both models for multiple forward years
  • List some uses of the formulae
  • Differentiate between Internal and External Funds, providing examples of each
  • Determine the optimal future Debt-to-Total Assets ratio, given the EFN forecast
  • Explain why a firm’s financial ratios may change

 

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Introduction to Financial Analysis Copyright © 2022 by Kenneth S. Bigel is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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