Question: QUESTION 11 A financial analyst is comparing two companies using a top-down approach. Which of the following would cause the biggest problem in the evaluation

QUESTION 11

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

QUESTION 9

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
		$0.95

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