The Reliability of Short-Term Cash Forecast Depends Most Heavily on the Quality

question 2

Multiple Choice

The reliability of short-term cash forecast depends most heavily on the quality of:

• A)cost of goods sold forecast.
• B)current ratio forecast.
• C)sales forecast.
• D)shares outstanding forecast.

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Definitions:

Constant Dividend

A dividend policy where a firm pays out a fixed amount of dividends each year to its shareholders regardless of the firm's earnings.

Equity Investments

Equity investments involve purchasing shares of a company, thereby obtaining ownership interest, with the expectation of earning dividends or profiting from share price appreciation.

Rate of Return

Outcomes in terms of profit or loss on an investment during a defined period, voiced as a percentage of the investment’s initial pricing.

Investor's Return

The upward or downward financial impact on an investment within a specific period, quantified as a percentage of the investment’s outset cost.