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 |
