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Why current earnings may not be a good barometer

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Reference no: EM13866948

In the study of earnings quality by Dichev et al CFOs stated that “current earnings are considered to be high quality if they serve as a good guide to the long-run profits of the firm. Discuss how and why current earnings may not be a good barometer of the long-term profits of the firm.

Reference no: EM13866948

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