Financial Statement Analysis Should Be Included in Investment Analysis Because

question 87

Multiple Choice

Financial statement analysis should be included in investment analysis because

• A) A firm's business conditions can be compared with similar firms to determine whether its current operations are average or above or below average.
• B) We can predict earnings and dividends by forecasting the future financial conditions.
• C) We can use the accounting statements and information regarding current and forecasted business conditions to form expectations regarding the risk of the firm's future operations.
• D) Only a and b are valid reasons.
• E) a,b and c are all valid reasons.

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