What Hurdles Are Present to Calculating Industry Attractiveness Scores

question 18

Multiple Choice

What hurdles are present to calculating industry attractiveness scores?

• A) Deciding on the appropriate weights for the attractiveness measures.
• B) Different analysts use different weights for the different attractiveness measures.
• C) Gaining sufficient command of the industry to assign more accurate and objective ratings.
• D) None of these.
• E) All of these.

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Definitions:

Debt to Total Assets

A financial ratio that shows the proportion of a company's assets that are financed through debt.

Basic Earnings per Share

A measure of a company's profitability, calculated by dividing net income by the number of outstanding common shares.

Industry Averages

Statistical measures that represent the typical value or norm within a particular industry, used for benchmarking and comparative analysis.

Horizontal Analysis

Horizontal analysis, also known as trend analysis, is a financial analysis technique that compares historical financial data over a series of periods to identify trends, increases, or decreases in financial performance.