Which of the following is true regarding earnings estimates?
A)management at most firms will update estimates monthly
B)analysts typically rely on the estimates provided by management
C)some firms have chosen not to provide estimates of earnings
D)most analysts arrive at similar estimates of earnings

Question

Quizplus · Accepted Answer

Some firms have chosen not to provide estimates of earnings. While some firms do provide earnings estimates, others have chosen not to provide them, so option C is true. Option A is false as management at most firms do not update estimates monthly. Option B is also false as analysts do not rely solely on the estimates provided by management; they conduct their own analysis to arrive at their estimates. Option D is also false as analysts often arrive at different estimates of earnings.

Which of the Following Is True Regarding Earnings Estimates