QUESTION 11 A financial analyst is comparing two companies using a top-down approach. Which of the following...

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Accounting

QUESTION 11
A financial analyst is comparing two companies using a top-downapproach. Which of the following would cause the biggest problem inthe evaluation process?
One company's financial year-end is 31 October, whilethe other company's financial year-end is 31 December.
The companies operate in differentindustries.
One company has been in business significantly longerthan the other company.
Inflation has been low for several years
QUESTION 9
Selected data from the financial statements of Ned Kelly (NK)are presented below.
2017
2016
Total comprehensive income
$145 000
$123 000
Cash dividends paid on ordinary share
42 000
38 000
Average number of ordinary shares
170 000
135 000
Market price per ordinary share year-end
16.00
13.00
Earnings per share for 2017 is:
$0.76
$1.57
$0.49
$0.95

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Question 11 In top down approach of analysis the investor analyst starts analysing by reviewing the macro picture of the economy then the region in which the company operates followed by industry analysis and finally the See Answer

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QUESTION 11A financial analyst is comparing two companies using a top-downapproach. Which of the following would cause the biggest problem inthe evaluation process?One company's financial year-end is 31 October, whilethe other company's financial year-end is 31 December.The companies operate in differentindustries.One company has been in business significantly longerthan the other company.Inflation has been low for several yearsQUESTION 9Selected data from the financial statements of Ned Kelly (NK)are presented below.20172016Total comprehensive income$145 000$123 000Cash dividends paid on ordinary share42 00038 000Average number of ordinary shares170 000135 000Market price per ordinary share year-end16.0013.00Earnings per share for 2017 is:$0.76$1.57$0.49$0.95