True/False Indicate whether the statement is true or false. __F__ 1. Pro forma financial statements, as discussed in the text, are used primarily to assess a firm's historical performance. __T__ 2. The first, and most critical, step in constructing a set of pro forma financial statements is the sales forecast. __T__ 3. A typical sales forecast, though concerned with future events, will usually be based on recent historical trends and events as well as on forecasts of economic prospects.
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//integrafs1/cengage/3-Pagination/Cengage_US/Business_and_Economics/FFM13e/3B2/brigham_endpaper.3d, 11/16/11, 17:35, page: 1 FREQUENTLY USED SYMBOLS/ABBREVIATIONS ACP Average collection period ADR American depository receipt AFN Additional funds needed AMT Alternative minimum tax APR b Annual percentage rate Beta coefficient, a measure of an asset’s riskiness bL Levered beta bU Unlevered beta BEP BVPS CAPEX CAPM CCC Basic earning power Book value
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