The Estimation Based on the Experience of One or More

question 102

Multiple Choice

The estimation based on the experience of one or more experts on the particular activity or project is called:

• A)published estimating data.
• B)expert judgment.
• C)bottom- up estimating.
• D)alternatives analysis.

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Definitions:

Future Inflation

Anticipated increase in the price level of goods and services in the future, affecting purchasing power.

Market Risk Premium

The additional return an investor expects from holding a risky market portfolio instead of risk-free assets.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often based on the risk of investing in that company's equity.

Dividend Growth Model

A valuation method that estimates the price of a company's stock based on the dividend growth rate and the expected dividend payments.