One of the disadvantages of a regression-based linear trend forecasting model is that the forecast errors are computed for time periods that were used in developing the forecasting model and thus do not truly measure the forecasting ability of the
model. Indicate whether the statement is true or false
TRUE
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Many technology companies are hesitant to involve customers in the development of their products, since they are trying to protect their latest products and ideas from competitors' attempts to replicate them. This typically results in a fairly ______ system.
A. responsive B. closed C. distinctive D. stable E. intelligent
According to William Baxter, there is an optimal level of pollution that would best serve society's interests.
Answer the following statement true (T) or false (F)
Which of the following mathematical expressions is used to compute the net working capital of a firm?
A. Net working capital = Total liabilities ? Retained earnings B. Net working capital = Total assets ? Current assets C. Net working capital = Total liabilities ? Current liabilities D. Net working capital = Current assets ? Current liabilities E. Net working capital = Total equity ? Retained earnings
A company with a 15% tax rate buys preferred stock in another company. The preferred stock has a before-tax yield of 7.50%. Assume a 70% dividend exclusion for tax on dividends. What is the preferred stock's after-tax return? (Round your final answer to two decimal places.)
A. 7.74% B. 6.95% C. 7.16% D. 5.94% E. 7.09%