Quantitative Data Includes Which of the Following

question 1

Multiple Choice

Quantitative data includes which of the following?

• A) Cash
• B) Risk tolerance level
• C) Stock/bonds and mutual funds
• D) A and C
• E) B and C

Comprehend the application of the perpetuity formula in computing the cost of preferred and common stock.

Understand the concept of the cost of debt and its significance in the overall cost of capital.

Grasp the basics of the Dividend Growth Model (DGM) and its use in estimating the cost of equity.

Identify the appropriate cost of capital for individual projects based on the specific risks and characteristics of the project.

---

Definitions:

Profit Margin

A financial metric used to evaluate a company's profitability, calculated as net income divided by revenue.

Net Fixed Assets

Assets with a physical form that are held by a company for long-term use, minus depreciation.

Average Collection Period

How long, on average, it takes for a business to get paid by its customers.

Days' Sales In Inventory

A financial measure indicating the average time in days that a company takes to turn its inventory into sales.