What is the best prediction of the next change? (Give your answer in decimals) Part 2 of 3 - BSuppose the following model describes changes in Company ABC's sales:A ABCt = 0.078 - 0.095(A ABCt-1)The current change (first difference) in the company's sales growth rate is 0.04.Use this information to answer the questions below. (NB: For all the questions below, give your final answersto 3 decimal places.)

The sales growths are changing and change in sales depends on the change in sales of previous change…

Answered: t 2 of 3-B Suppose the following model…

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

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ISBN:9781285065137

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Chapter3: Financial Statements, Cash Flow, And Taxes

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What is the best prediction of the next change? (Give your answer in decimals)

Part 2 of 3 - B
Suppose the following model describes changes in Company ABC's sales:
A ABCt = 0.078 - 0.095(A ABCt-1)
The current change (first difference) in the company's sales growth rate is 0.04.
Use this information to answer the questions below. (NB: For all the questions below, give your final answers
to 3 decimal places.)

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Suppose we want to compute the four-quarter moving average of Company ABC’s sales as of the beginning of the first quarter of 2022. ABCs sales in the previous four quarters were as follows: 1Q 2021, R 1,200,000; 2Q 2021, R 800,000; 3Q 2021, R 750,000; and 4Q 2021, R 1,600,000. Calculate the four-quarter moving average of sales as of the beginning of the first quarter of 2022.

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What is the prediction of the change following the next change? (Give your answer in decimals)

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