What Is the Advantage of Morgan Stanley Dean Witter's "Apples

question 24

Multiple Choice

What is the advantage of Morgan Stanley Dean Witter's "Apples to Apples" approach to comparing international financial statement data?

• A)It provides complete conversion of foreign financial statements to U.S.GAAP, which may not be available from the reporting entities themselves.
• B)It focuses only on the industry-specific factors MSDW believes are most important to stock valuation, which eliminates the need for converting complete financial statements.
• C)It is not affected by differences in GAAP across countries.
• D)The same measures are used for all industries in all countries, which eliminate comparability issues.

---

Definitions:

Marginal Cost

The rise in overall expenses resulting from the manufacture of an extra unit of a product or service.

Collude

To collude means to cooperate or conspire in secret, especially with the intention to cheat or deceive others, such as companies agreeing to fix prices.

Total Revenue

The total amount of money generated by a company from sales of its products or services before any expenses are subtracted.

Price Effect

The impact on the market when there is a change in the price of goods or services, influencing the supply and demand.