A Type of Sensitivity Analysis (Called What If in Microsoft

question 95

True/False

A type of sensitivity analysis (called what if in Microsoft Excel) involves having the spreadsheet compute the amount a constant value would need to be in order for the result of a particular formula to become a specified amount. _________________________

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Definitions:

Interest Earned

The total amount of interest received by a person or entity on investments over a specific period of time.

Convertible Bonds

Bonds issued by a company that can be exchanged by the holder for a predetermined number of the company's shares.

Common Stock

A type of security that represents ownership in a corporation and entitles its holder to a share of the company's profits through dividends and/or capital appreciation.

Face Value

The nominal value or dollar value stated on a financial instrument, such as a bond or stamp.