Which One of the Following Is a Financial Planning Method

question 9

Multiple Choice

Which one of the following is a financial planning method wherein some account values vary in relation to expected sales?

• A)common size approach
• B)linear method
• C)percentage of net income method
• D)adjusted sales method
• E)percentage of sales approach

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Definitions:

Yield Curve

A graphical representation of the interest rates on debts for a range of maturities, showing the relationship between interest rates and the term of the debt.

Expectations Theory

A theory suggesting that the interest rates on long-term bonds will reflect expected future short-term rates.

Forward Rates

The interest rates implied by current zero-coupon bond prices for periods in the future.

Future Short Interest Rate

An estimation or prediction of the interest rates at a future point in time, often used in the valuation of interest rate derivatives.