When Using the Top-Down Approach to Company Valuation, Which Is

question 20

Multiple Choice

When using the top-down approach to company valuation, which is the proper order for an analyst to use?

• A)Macro-economic environment, company analysis, industry analysis
• B)Company analysis, industry analysis, macro-economic environment
• C)Macro-economic environment, industry analysis, company analysis
• D)Industry analysis, company analysis, macro-economic environment
• E)Company analysis, macro-economic environment, industry analysis

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Definitions:

Indebtedness

The condition of owing money or being under financial obligation to others, which could include loans or issued bonds.

Profitability

A measure of how efficiently a company or business generates profit in relation to its revenue.