Simulation Models Allow the Analyst to Test Possible Changes in the Variables

question 60

True/False

Simulation models allow the analyst to test possible changes in the variables used in the model.

---

Definitions:

Interest Rate

Interest: the financial charge applied to the borrower by the lender, calculated as a percentage of the principal for asset usage.

Corporate Tax Rate

The tax imposed on the net income of a company by the government.

WACC

Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, including all sources of capital like equity, debt, and any other funding sources.

WACC

Refers to the Weighted Average Cost of Capital, a method to determine a company's capital cost where each type of capital is weighted according to its proportion.