Which of the following statement regarding ratio analysis is incorrect? Select one: a. Ratios cannot tell whether assumptions about future cash flows are realistic. b. Ratios cannot confirm whether forecast assumptions will turn out to be correct. c. Ratios can tell whether future sales growth was accurately captured d. Ratios can tell whether growth rates for sales are consistent with past sales growth performance.
Which of the following statement regarding ratio analysis is incorrect? Select one: a. Ratios cannot tell whether assumptions about future cash flows are realistic. b. Ratios cannot confirm whether forecast assumptions will turn out to be correct. c. Ratios can tell whether future sales growth was accurately captured d. Ratios can tell whether growth rates for sales are consistent with past sales growth performance.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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11.
Which of the following statement regarding ratio analysis is incorrect?
Select one:
a.
Ratios cannot tell whether assumptions about future cash flows are realistic.
b.
Ratios cannot confirm whether forecast assumptions will turn out to be correct.
c.
Ratios can tell whether future sales growth was accurately captured
d.
Ratios can tell whether growth rates for sales are consistent with past sales growth performance.
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