1. A financial analyst is comparing two companies using a top-down approach. Which of the following would cause the biggest problem in the evaluation process?
One company's financial year-end is 31 October, while the other company's financial year-end is 31 December.
The companies operate in different industries.
One company has been in business significantly longer than the other company.
Inflation has been low for several years

2. Selected data from the financial statements of Ned Kelly (NK) are presented below.

	2017	2016
Total comprehensive income	$145 000	$123 000
Cash dividends paid on ordinary share	42 000	38 000
Average number of ordinary shares	170 000	135 000
Market price per ordinary share year-end	16.00	13.00

Earnings per share for 2017 is:

		$0.76
		$1.57
		$0.49

Answer rating: 100% (QA)

1 In top down approach of analysis the investor analyst starts analysing by reviewing the macro pict... View the full answer