An investor notes that the net income of a major corporation grew 10% last year and that it is currently growing at 11%.The analyst concludes that the net income will rise 12% next year.This is an example of a(n):

Question

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This is an example of an earnings forecast, where the analyst is predicting future growth in net income based on past and current trends. It is not an audit, credit analysis, or business model.

An Investor Notes That the Net Income of a Major