1- Assume all the firms in particular industry have consistently experienced similar rates of return. Discuss what this implies regarding the importance of industry and company analysis for this industry.

2-What were the results when industry risk was examined during successive time periods? Discuss the implication of these results for industry analysis.

3- Discuss the two variables that must be considered whether you are using the present value of cash flow approach or the relative valuation approach to valuation. Why are these variables relevant for either valuation approach?