Describe in Two Specific Examples How Predictive Analytics Are Used

question 8

Essay

Describe in two specific examples how predictive analytics are used to understand a current business situation and then use this knowledge to help determine a future result.

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Definitions:

Costs of Debt

The effective rate that a company pays on its total debt, including interests and fees.

Costs of Equity

The return that investors require for investing in a company's equity, reflecting the risk associated with owning the equity of the company.

Capital Structure

The capital structure is the mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.

Book Values

The net value of a company's assets, as recorded in its financial statements, minus its liabilities and intangible assets.