In assigning random numbers in a Monte Carlo simulation,
A) it is important to develop a cumulative probability distribution.
B) it is important to use a normal distribution for all variables simulated.
C) it is not important to assign probabilities to an exact range of random number intervals.
D) All of the above
E) None of the above
A
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In compensation, ______ moves some of the risk associated with having employees from the firm to the individual.
A. a rate range B. salaries C. variable pay D. entitlement
Which of the following statements is CORRECT?
A. Two firms with the same expected free cash flows and growth rates must also have the same value of operations. B. It is appropriate to use the constant growth model to estimate a stock's value even if its growth rate is never expected to become constant. C. If a company has a weighted average cost of capital WACC = 12%, and if its free cash flows are expected to grow at a constant rate of 5%, this implies that the stock's dividend yield is also 5%. D. The value of operations is the present value of all expected future free cash flows, discounted at the free cash flow growth rate. E. The constant growth model takes into consideration the capital gains investors expect to earn on a stock.
In a recommendation report, there is no need to explain the alternatives you investigated in addition to presenting the one you recommend
Indicate whether the statement is true or false
An allocation base for a cost pool should ideally be:
A. a cost object. B. a common cost. C. direct labor, either cost or hours. D. machine hours. E. a cost driver.