Sensitivity Analysis Is Conducted By

question 59

Multiple Choice

Sensitivity analysis is conducted by:

• A)holding all variables at their base level and changing the required rate of return assigned
• To a project.
• B)changing the value of two variables to determine their interdependency.
• C)changing the value of a single variable and computing the resulting change in the current
• Value of a project.
• D)assigning either the best or the worst possible value to every variable and comparing the
• Results to those achieved by the base case.
• E)managers after a project has been implemented to determine how each variable relates to
• The level of output realized.

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Definitions:

1933 Act

A U.S. federal law, officially known as the Securities Act of 1933, enacted to ensure more transparency in financial statements to protect investors from fraud.

Working Capital

The difference between a company's current assets and its current liabilities, indicative of its operational liquidity.

Tender Offer

is a public solicitation by a party proposing to buy shares from shareholders of a publicly-traded company at a specified price for a certain period.

Registered Stock

Shares of stock whose ownership is registered with the issuing company, making the stockholder eligible to receive dividends and reinstatement rights.