Please Consider These Independent Cases as You Respond to the Next

question 36

Multiple Choice

Please consider these independent cases as you respond to the next question: • Austin is the managing partner of a small CPA firm. In an effort to standardize certain internal business processes, Austin formed a team that developed a set of guidelines for tasks such as expense reimbursements and information technology purchases. After developing the guidelines, the team devised ways to determine if the processes are performing as expected.• Julie is the chief financial officer of PSC Corporation. She recently worked with a team to develop a broad set of principles that should characterize PSC's business processes. The team has applied those principles to some tasks in the accounting department; their next task is to teach other PSC employees about the principles.• Rob is an accountant at CTR Company. The owners of CTR, Lynn and Mark, don't know much about accounting, so Rob completes accounting tasks in whatever way seems best to him.Based on the levels of the capability maturity model, which of the following statements is most true?

• A)Austin's process is more advanced than Rob's because Austin used a team to develop the guidelines.
• B)Julie's process is more advanced than Rob's because PSC is incorporated.
• C)Austin's process is more advanced than Julie's because it incorporates metrics.
• D)None of the above statements is true.

Recognize the significance of growth rates in dividends and free cash flow in valuing stocks.

Evaluate the appropriateness of discount rates such as WACC, required rate of return on equity, and risk-free rate in valuation models.

Understand the concept of sensitivity analysis in investment analysis.

Learn the practical application of historical financial data in forecasting future stock performance.