In the Home Depot/Lowes case we (along with Carrie G) were quite diligent in our analysis and assessment both firms past financial performance and results. With that basis, we then proceeded to thoughtfully project each firms future performance, starting with top line Sales growth, and then applying our other assumptions to build out the projected financials.

Nonetheless, one of our concluding observations of this process was that (at least in this case):

Group of answer choices

The bottoms-up approach is always the most accurate.

Forecasting a firms financial statements in this manner is always a waste of time

The straightforward (naive) forecast is more than adequate for such purposes.

From a top-down perspective, our forecasts appeared to be somewhat unreasonable.

None of the above