What is the main purpose of obtaining external information? To provide the analyst with the most recent five years of financial information To gain an understanding of the company's operations and its products or services To give the analyst knowledge of any outside factors that may directly or indirectly affect the future operations of the subject company To comply with the report writing standards as set forth by regulatory bodies External information includes all of the following except: general economic information general industry information local and regional economic and industry information history, nature and organization of the subject company To find good comparable data to use in a valuation is: Relatively easy because each successful company within an industry uses the same ratios Relatively easy because public stock price fluctuation is not sufficient or erratic enough to make a difference Relatively difficult because book value is adjusted in small companies as first in first out is the method of choice and in public companies book value is static due to last in first out method Relatively difficult because size differential, management depth, product diversity and access to lines of credit will seldom match the company you are valuing