Forecasts Are

question 11

Multiple Choice

Forecasts are

• A)generally incorrect.
• B)predictions about the future.
• C)explanations of past occurrences.
• D)limited to short time periods.

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Definitions:

Residual Dividend Policy

A strategy where dividends paid to shareholders are set based on the earnings left over after all operational costs and working capital needs are met.

Retained Earnings

Profits that a company has decided to keep or reinvest in the business instead of distributing to shareholders as dividends.

Reverse Split

Procedure where a firm’s number of shares outstanding is reduced.

Stock Price

The cost of purchasing a single share of a particular company's stock on the open market, fluctuating based on demand, market conditions, and company performance.