A Firm Has the Following Order History Over the Last

question 114

Multiple Choice

A firm has the following order history over the last 6 months. January 120
February 95
March 100
April 75
May 100
June 50
What would be a 3-month weighted moving average forecast for July, using weights of 40% for the most recent month, 30% for the month preceding the most recent month, and 30% for the month preceding that one?

• A)75
• B)72.5
• C)50
• D)90
• E)106.5

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Definitions:

Par Common Stock

The nominal or face value assigned to common stock shares, as stated in the corporate charter.

Total Impact

The overall effect or influence of something, often used to assess the comprehensive outcome of a decision, action, or event.

Cumulative Preferred

A type of preferred stock where dividends accumulate if not paid in a given period and must be paid out before any dividends can be distributed to common stockholders.

Dividends in Arrears

Dividends owed on cumulative preferred stock that require payment prior to distributing any dividends to holders of common stock.