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Fixed in Sensitivity Analysis:

Which of the following actions is not permitted in a sensitivity analysis? a. Changing the projected growth rate b. Changing the dividend payout ratio c. Changing the cost of goods sold (COGS) d. Changing the projected growth rate and COGS

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Question added by Anayatullah Tahir , Accounting Consultant , Various
Date Posted: 2014/03/24
Muhammad Zubair
by Muhammad Zubair , CFO / Chief Accountant , RH Group

correct answer is A

Rashad Moursi
by Rashad Moursi , Financial and Administrative Officer & international Business Transformer, Hotel Owner Reprs. , Investment and financial

D. Changing the projected growth rate and COGS.

Sadiq ul Islam
by Sadiq ul Islam , Financial Controller , BinDawood Holding Company (BDH)

Option B is the right answer. Because dividend payout ratio is not involved in any revenue generation or expense incurred to generate revenues. This is simply relates to distribution of profit.

Md. Moshiur Rahman Sumon
by Md. Moshiur Rahman Sumon , Assistant General Manager( Corporate Finance & Head of Internal Audit) , Progressive Life Insurance Company Limited

Changing the projected growth rate  is the correct answer

So. Right answer  B.

zafar abbas minhas
by zafar abbas minhas , Freelance Writer , DAILY MASHRAQ

A

Aziz ur Rehman ur Rehman
by Aziz ur Rehman ur Rehman , Assistant Manager Finance , Central Power Puchasing Agency (CPPA)

"B"

reason

all other are relates to revenue generating activities and could be possible the variation  can  cause to change in the revenue

but the Divivdend payaout is not relevant to revenue generating activity butrelate to profit distribution activity

 

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