The process of estimating the dividends and earnings that can be expected from the firm based on determinants of value is called
A)business cycle forecasting.
B)macroeconomic forecasting.
C)technical analysis.
D)fundamental analysis.
E)none of the above.

Question

Quizplus · Accepted Answer

The process described in the question is fundamental analysis. It involves analyzing a company's financial statements, industry trends, and other relevant factors to determine its intrinsic value and potential for future growth. Business cycle forecasting and macroeconomic forecasting are broader economic analyses that may inform fundamental analysis but are not the same thing. Technical analysis, on the other hand, focuses on charts and patterns in stock prices rather than underlying factors affecting a company's value.

The Process of Estimating the Dividends and Earnings That Can