Question
How is capital expenditure typically linked to growth in a forecast model?
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Answer
As a percent of revenue or maintenance plus growth capex.
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Question
Why do high-growth firms usually require more growth capex in pro forma forecasts?
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Answer
Expansion needs more investment in fixed assets.
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Question
How does a bull-case forecast typically differ from a bear-case forecast?
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Answer
Bull uses stronger growth and margins; bear uses weaker assumptions.
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Question
What does sensitivity analysis isolate in a forecast model?
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Answer
The effect of one changed input at a time.
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