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Company ABC has been bringing in very stable profits over the past 5 years. Unfortunately, because of COVID, the company's profit dropped drastically by 70%.
Company ABC has been bringing in very stable profits over the past 5 years. Unfortunately, because of COVID, the company's profit dropped drastically by 70%. The CEO expects such poor performance for the next 3 years and very confident that the profits can return back to pre-COVID level. In this case, to model this company, we need to: A. make adjustments to the required returns B. No adjustments required C. make adjustments to the profit margin D. make adjustments to the forecasted profits
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