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Unformatted text preview: Having a financial forecast can often help the owners of such companies obtain higher payment for ownership shares in their company or for the entire company itself. A well prepared financial forecast can have this effect because it can provide guidance as to what profits, assets, and liabilities are expected to be in the future. This helps potential investors or buyers evaluate the rate of return on their investment. Finally, an existing company can use a financial forecast to determine whether it can expand or whether it should alter a current business practice. A forecast can help business managers look at future results based on current actions. Because of this it allows them to stop poor decisions before they are made and to make good decisions based on their estimated results....
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This note was uploaded on 01/04/2011 for the course FIN 200 taught by Professor Williams during the Spring '08 term at University of Phoenix.
- Spring '08