CHAPTER 7 QUIZ 66 Advantages of using pro-forma income statements to estimate EPS over using regression analysis include all of the following EXCEPT A) the analyst is able to study profitability and the effects of taxes on profit margins. B) interest expense, and debt and equity financing can be factored into the analysis. C) hidden problems in stable growth firms would be brought out. D) effects of the business cycle on profit margins can be included in the forecast.
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