Question: An analysis based on ratios should be supplemented with judgmental considerations such as the possible effects of new competitors like the Internet on newspapers, labor
An analysis based on ratios should be supplemented with judgmental considerations such as the possible effects of new competitors like the Internet on newspapers, labor problems such as those experienced by the US auto industry, environmental problems such as those facing the US electric utilities, and the like. If the fundamentals of an industry change, then strong historical ratios won't help its future performance. True or false?
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