Reverting behavior of sales growth and return on equity

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Reference no: EM132036880

1. Profit margins and ROE's tend to be driven to normal levels by competition over time.

True

False

2. The mean-reverting behavior of sales growth and return on equity that is demonstrated by the broader market can be applied to all companies in that market.

True

False

3. Forecasting represents the first step of prospective analysis and serves to summarize the forward looking view that comes from business strategy analysis, accounting analysis and financial analysis.

True

False

Reference no: EM132036880

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