Why Is It Stated That the Safest Way of Evaluating

question 71

Essay

Why is it stated that the safest way of evaluating the potential gains from a merger is to focus on changes in cash flow that will transpire as a result of the merger?

Understand the principles and advantages of the scientific method in psychology.

Define and differentiate between key research variables in experimental design.

Recognize the importance of controlling for extraneous variables in research studies.

Identify and describe measures of central tendency and variability.

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Definitions:

Percentage Of Sales Approach

Financial planning method in which accounts are projected depending on a firm’s predicted sales level.

Net Income

The final profit figure for a company after deducting taxes and expenses from the revenue.

Dividend Payout Ratio

The dividend payout ratio is the fraction of net income a firm pays to its shareholders in dividends, expressed as a percentage of the company's total net income.

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends.