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Describe three ways that pro forma statements are used in financial planning.

A. Describe three ways that pro forma statements are used in financial planning.
b. Explain the steps in financial forecasting.
c. Briefly explain how to forecast financial statements using the forecasted financial statements approach. Be sure to explain how to forecast interest expenses.
d. How is it possible for an employee stock option to be valuable even if the firm’s stock price fails to meet shareholder’s expectations?

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