Which of the Following Statements Is (Are)true

question 57

Multiple Choice

Which of the following statements is (are) true?

• A)It is always better to use cash-flow-based forecasts.
• B)For publicly traded corporations, earnings-based forecasts of terminal values are superior to cash-flow-based forecasts, on average.
• C)It is always better to use earnings-based forecasts.
• D)Both B and C are true statements.

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Definitions:

Demand Costs

The expenses associated with the demand for goods or services, including production and marketing costs.

EDLP Pricing

A pricing strategy where a company sets consistently low prices for all its products without running short-term promotions.

Reference Price

The price against which buyers compare the actual selling price of the product and that facilitates their evaluation process.

Strategy

A comprehensive plan or set of actions designed by an individual or organization to achieve specific long-term goals.