Forecast by analysts, retention growth model and historical growth rates are methods used for an______________?
Correct answer: A. Estimate future growth
- A. Estimate future growth
- B. Estimate option future value
- C. Estimate option present value
- D. Estimate growth ratio
Explanation
Analyst forecasts, retention-growth models and historical growth rates are techniques for estimating a company’s future growth. They do not directly calculate an option’s value or a general growth ratio.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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