Extrapolation Forecasting Methods Are Quantitative Methods That Use Past Data

question 22

True/False

Extrapolation forecasting methods are quantitative methods that use past data of a time series variable - and nothing else,except possible time itself - to forecast values of the variable.

---

Definitions:

Retained Earnings

Retained earnings refer to the portion of a company's profits that are kept by the company instead of being paid out as dividends to shareholders, often used for reinvestment in the business or to pay down debt.

Dividend Payout Ratio

A financial metric that shows what portion of a company's net income is paid out to shareholders in the form of dividends.

Total Debt

The sum of all liabilities, including both short-term and long-term debts, owed by a company.

Sustainable Rate Of Growth

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its debt or equity.