Two Smoothing Models That Yield Identical Forecasts Are Exponential Smoothing

question 49

Short Answer

Two smoothing models that yield identical forecasts are exponential smoothing with an alpha equal to ________ and a moving average with n equal to ________.

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; also known as stockholders' equity.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and earnings without increasing its financial leverage or equity financing.

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

Payout Ratio

A financial metric that shows the proportion of earnings a company pays to its shareholders in the form of dividends.