External Data Is Data That Originates Outside of the Client

question 43

True/False

External data is data that originates outside of the client organization.

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Definitions:

Operating Leverage

A financial measure of a firm's fixed versus variable costs, which assesses how revenue growth translates into growth in operating income.

Financial Leverage

The use of borrowed funds to increase the potential return on investment.

MM Model

The MM Model, or Modigliani-Miller Theorem, is a finance theory that suggests market value of a company is determined by its earning power and risk of underlying assets, independent of its capital structure.

Cost Of Equity

The return a company requires to decide if an investment meets capital return requirements, often used in capital budgeting to evaluate projects.