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please Question 1 Select the correct sequence for developing forecasts: Sales, PM , then ATO Sales, ATO, then PM None of these Sales growth, NOPAT,
please Question
Select the correct sequence for developing forecasts:
Sales, PM then ATO
Sales, ATO, then PM
None of these
Sales growth, NOPAT, then NOA
Question
When forecasting, why do we ignore the financial aspects of the enterprise?
None of these
Because top management controls the financing decisions, and by forecasting the value of operations,
we can ignore those financing decisions
Because financing decisions imvolves tax benefits
Because financing decisions are too difficult to solve
Question
Why do analysts sometimes perform parsimonious forecasting instead of fullinformation
forecasting?
Parsimonious forecasting is simpler to execute and saves time
Parsimonious forecasting often generates more accurate forecasts
Parsimonious forecasting is more popular among top analysts
All of these
Question
Why is the forecast of revenue growth critical in valuation?
Top management is very focused on revenue growth
Revenue is the primary driver of value and many expense items as well as components in NOA
Revenue is the top number in an Income Statement
None of these
Question
After forecasting sales, PM and ATO, how are these forecasts evaluated for reasonableness?
Whether they are consistent with top management's forecasts
Whether they are consistent with external analysts' forecasts
All of these
Whether the implied RNOA is within an industry averagehelp.
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