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What is the term used to describe a company's ability to maintain steady and predictable growth...

What is the term used to describe a company's ability to maintain steady and predictable growth that does not cause spikes and thus investor concern?

goodwill, retained earnings, smooth earnings, or mark to market

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Answer #1

The correct option is option 3.

Smooth earnings : are earnings which are steady and predictable and does not catch the investors by surprise.

Companies indulge in this practice because the investors as they are willing to pay premium for such stocks which provide them with smooth and steady earnings.

Goodwill means is an intangible asset that adds to a company value but cannot be quantified.

Retained earnings: is the amount of net income left over after the company has paid out dividends.

mark to market: Marking to market refers to the daily settling of gains and losses due to changes in the market value of the security.

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