When Modelling the Industry Earnings Per Share Forecast,the Main Modelling

question 38

Multiple Choice

When modelling the industry earnings per share forecast,the main modelling problem lies in the prediction of:

• A) industiy classification
• B) industry sales
• C) industry capital structure
• D) all of the above

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Definitions:

Net Sales

The top line reported on the income statement. Net sales = Sales revenue − (Credit card discounts + Sales discounts + Sales returns and allowances).

Total Asset Turnover

A metric that evaluates how effectively a company utilizes its assets to produce sales income.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Fixed Assets

Long-term tangible assets used in the operation of a business that are not intended to be sold within a year, such as buildings, machinery, and equipment.