You are valuing a company that has a June 30 financial year end. It is now April 5, 2016. Assuming your company publishes its 10-Q no earlier than 2 weeks of the end of the quarter, how many quarters of activity must you forecast when estimating the annual net income for the year that will end June 30, 2016? 1 2 3 4 5 Which of the following statements is correct regarding forecast errors. A $1,000 forecast error in 10 years is more expensive in terms of valuation error, today, when compared to an $800 error in 3 years, (assume a 15& discount rate) Raw (undiscounted) forecasts errors are expected to grow in time. When forecasting balance sheets in an equity valuation project, one is more concerned with the accuracy of forecast total liabilities than forecast total equity. It is normal to expect undiscounted forecast errors in a long-run horizon (more than 10 years out) are relatively lower than intermediate term forecasts (5-7 years out)