Because the DDM requires multiple estimates, investors should
A. carefully examine inputs to the model.
B. perform sensitivity analysis on price estimates.
C. not use this model without expert assistance.
D. feel confident that DDM estimates are correct.
E. carefully examine inputs to the model and perform sensitivity analysis on price estimates.
E. carefully examine inputs to the model and perform sensitivity analysis on price estimates.
Small errors in input estimates can result in large pricing errors using the DDM. Therefore, investors should carefully examine input estimates and perform sensitivity analysis on the results.
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Indicate whether the statement is true or false
Selected information for Henriot Company is as follows: December 31 2013 2014 Common stock ................................ $600,000 $600,000 Additional paid-in capital .................. 250,000 250,000 Retained earnings ........................... 170,000 370,000 Net income for year ......................... 120,000 240,000 Henriot's return on common stockholder's equity, rounded to the nearest
percentage point, for 2014 is a. 20 percent. b. 21 percent. c. 28 percent. d. 40 percent.
Based on the typology developed by Ronald Mitchel, Bradley Agle, and Donna Wood, which of the following would qualify as a high-legitimacy stakeholder?
a. a well-known and loved volunteer firefighters’ association b. a labor union for the company’s industry during an economic boom c. a single customer who will lose her home if an issue with the company is not resolved d. a government regulator who is about to audit the company
Problem analysis and data collection come in which stage of the Five “I” decision-making format?
A. identify B. investigate C. isolate D. innovate