What Is the Analysis That Works in Reverse to What-If

question 39

Multiple Choice

What is the analysis that works in reverse to what-if and sensitivity analyses by finding the inputs necessary to achieve a goal such as a desired level of output?

• A) Solutions based analysis
• B) Optimization system
• C) Goal-seeking analysis
• D) Revenue analysis

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Definitions:

Cash Dividend

A distribution of a company's earnings to its shareholders in the form of cash.

Residual Dividend Approach

A policy whereby dividends are based on earnings minus funds retained to finance the optimal capital budget.

Predictable Dividend Payout

Regular, forecastable payments made by a company to its shareholders, usually as a part of the firm's profit sharing mechanism.

Clientele Effect

The theory that a company’s stock price will move according to the demands and preferences of its investors or clientele regarding dividend policies.