Sensitivity Analysis Is Used to Check the Effect of Changes

question 33

True/False

Sensitivity analysis is used to check the effect of changes in the model.

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Definitions:

Dividend Payments

Dividend payments are the distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders.

Cash Flows

The cumulative total of cash inflows and outflows in a company, influencing its liquid assets.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.