Sensitivity Analysis Is Sometimes Referred to as

question 26

Multiple Choice

Sensitivity analysis is sometimes referred to as

• A)feasibility testing.
• B)duality analysis.
• C)alternative analysis.
• D)postoptimality analysis.

---

Definitions:

Semi-Annual Coupon Rate

The interest rate on a bond that pays out interest twice a year.

Corporate Marginal Tax Rate

The tax rate that a corporation pays on its last dollar of taxable income, which can impact corporate investment decisions and strategies.

Marginal Tax Rate

The percentage of tax levied on the last dollar of an income earner's taxable income, reflecting the tax applied to each income level for which the taxpayer is eligible.

After-Tax Cost

The net cost of an investment or financing after taking into account the effects of taxation.