Question: An analyst is considering three different assumptions to model the net sales of a company: Method 1: Net sales will grow at 1.5 times the
An analyst is considering three different assumptions to model the net sales of a company:
- Method 1: Net sales will grow at 1.5 times the nominal growth rate in GDP.
- Method 2: Industry sales will grow at the same rate as GDP, however, the company will grow in market share by 5 percentage points.
- Method 3: Net sales will grow at 0.5 percent plus 1.1 the previous year's growth rate.
Which of the methods is most likely to be a bottom-up method?
| Method 2. | ||
| Method 3. | ||
| Method 1. |
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