Reference no: EM132823965

Problem 1: Which of the following would be the ideal way for an analyst to identify peer companies?:

Option 1: None of these choices.
Option 2: Australian Stock Exchange.
Option 3: The Global Industry Classification Scheme.
Option 4: Australian Securities and Investments Commission.

Problem 2: To ensure measurement consistency in calculating the ROE denominator, an analyst should:

Option 1: Average the common shareholder's equity between reporting periods.
Option 2: Deduct preference capital from total share capital.
Option 3: Use net profit before tax.
Option 4: Use net profit after tax.

Problem 3: When might an analyst disregard preferred dividends?

Option 1: When the firm has not issued preference shares.
Option 2: When the firm has not issued priority capital.
Option 3: When the firm has not issued either preference shares or priority capital.
Option 4: When the firm has not generated a profit for the year.