Demand Forecast Accuracy Is Important Because Underestimating Demand Leads to ________

question 84

Multiple Choice

Demand forecast accuracy is important because underestimating demand leads to ________.

• A) high inventory costs
• B) discount blowouts
• C) customer satisfaction
• D) lost sales

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Definitions:

Capital Structures

The particular combination of debt and equity used by firms to finance their overall operations and growth.

Recapitalization

The process of restructuring a company's capital structure by exchanging one form of financing for another, such as debt for equity.

Cost of Equity

The return that investors expect for investing in a company's equity, reflecting the risk compared to risk-free assets.

WACC

Weighted Average Cost of Capital, a calculation used to estimate the average rate of return a company is expected to pay its security holders to finance its assets.