When modelling the industry earnings per share forecast,the main modelling problem lies in the prediction of:

A) industiy classification
B) industry sales
C) industry capital structure
D) all of the above

Question

When modelling the industry earnings per share forecast,the main modelling problem lies in the prediction of:

A) industiy classification
B) industry sales
C) industry capital structure
D) all of the above

Quizplus · Accepted Answer

Industry earnings per share forecasts may be based on a wide range of information.The ratio of earnings before interest and tax (EBIT)to sales provides some basic information that might be used in forming predictions.The key modelling problem is the prediction of industry sales.The forecast of sales may be based on the level of sales for all listed corporations,as there is a tendency for industries to move together over time.However,other factors specific to the industry may also be relevant.

When Modelling the Industry Earnings Per Share Forecast,the Main Modelling