Which of the following are true concerning the properties of consensus earnings forecasts for cyclical companies?
I.They account for the cyclical nature of the firm.
II.Discounted cash flow (DCF ) models are usually consistent with the facts.
III.The forecasts usually show an upward-sloping trend.
IV.The earnings and cash flow projections of the market are consistent with company performance.
A) I and II only.
B) I and III only.
C) II and III only.
D) II and IV only.
Correct Answer:
Verified
Q1: The discounted cash flow (DCF )valuations of
Q2: Given the following list of patterns of
Q3: According to simulations of the prices of
Q4: A pessimistic forecast from an analyst may
Q5: According to the empirical evidence,which of the
Q6: A cyclical company is one whose earnings
Q7: The four-step approach for valuing cyclical companies
Q8: Which of the following is most accurate
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents