问题详情

Anequityanalystisforecastingthenextyear’snetprofitmarginofaheavyequipmentmanufacturingfirm,byusingtheaveragenetprofitmarginoverthepastthreeyears.Inmakinghisprofitprojection,heisconcernedaboutthefollowingthreeitems:
·Thecompanysufferedlossesfromdiscontinuedoperationsineachofthepastthreeyears.
·Themostrecentyear’staxratewasonlyonehalfthepriortwoyears’rateasaresultofafiscalstimulus.
·Thecompanyexperiencedgainsonthesaleofinvestmentsineachofthepastthreeyears.
Whichofthefollowingstatementsaboutthepreparationoftheforecastismostaccurate？Theanalystwould:
A.usethemostrecenttaxratebecausethatisthebestpredictoroffuturetaxrates.
B.excludethegainsonthesalefrominvestmentsbecausethecompanyisamanufacturingfirm.
C.includethediscontinuedoperationsbecausetheyappeartobeanon-goingfeatureforthiscompany.