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.Briefly describe the results of studies that examined the performance of alternative industries during specific time periods, and discuss their implications 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?