Chapter11: Venture Capital Valuation Methods
Section11.3: Earnings Multipliers And Discounted Dividends
Problem 3CC
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What are the different variables in sensitivity analysis?
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Under a given set of expectations, a sensitivity analysis describes the way different values of an independent variable influence a specific dependent variable.
In other words, it is a forward projection tool employed by managers to effectively handle the risks inherent in planning and budgeting, It is also referred as what if analysis.
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