SCENARIO 16-9 Given Below Are EXCEL Outputs for Various Estimated Autoregressive Models

question 153

Multiple Choice

SCENARIO 16-9
Given below are EXCEL outputs for various estimated autoregressive models for a company's real operating revenues (in billions of dollars) from 1989 to 2012.From the data,you also know that the real operating revenues for 2010,2011,and 2012 are 11.7909,11.7757 and 11.5537,respectively.
First-Order Autoregressive Model:
Second-Order Autoregressive Model:

-Referring to Scenario 16-9,if one decides to use the Third-Order Autoregressive model ,what will the predicted real operating revenue for the company be in 2013?

• A)$11.55 billion
• B)$11.62 billion
• C)$11.84 billion
• D)$12.47 billion

Evaluate the fair market value of shares based on dividend forecasts and required rates of return.

Understand the relationship between discount rates and present values.

Calculate the future value of a single sum and annuity.

Grasp the concepts of compound interest and how it is computed.

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Definitions:

Commercial Banks

Financial institutions that offer a wide range of banking services to businesses and consumers, including deposit accounts and loans.

Short-Term Loans

Loans that are scheduled to be repaid in less than a year, used to meet immediate financial needs or cash flow shortages.

Abnormal Returns

Financial returns that exceed what is expected based on risk-adjusted benchmarks or historical averages.

Macroeconomic Analysis

The examination of the overall economic dynamics, including national income, growth rates, inflation, and unemployment.