Question

Which of the following is not, historically, typical of the attitude of an analyst where business trends are upward (or positive)?

	Tendency to apply higher multiples on past earnings and cash flows.
	Build in speculative components to price target based upon future expected improvement.
	Neglect to differentiation between value and speculation.
	Fully account for possibility that forecasts are too optimistic.

Financing activities is defined as:

	The principal revenue-generating activities of an organization and other activities that are not investing or financing; any cash flows from current assets and current liabilities
	Cash flows from the acquisition and disposal of long-term assets and other investments not included in cash equivalents
	Cash flows that result in changes in the size and composition of the contributed equity and borrowings of the entity (i.e. bonds, stock, cash dividends)
	All of the above.

3. Investing activities is defined as:

	The principal revenue-generating activities of an organization and other activities that are not investing or financing; any cash flows from current assets and current liabilities
	Cash flows from the acquisition and disposal of long-term assets and other investments not included in cash equivalents
	Cash flows that result in changes in the size and composition of the contributed equity and borrowings of the entity (i.e. bonds, stock, cash dividends)
	All of the above.

4. Operating activities is defined as:

	The principal revenue-generating activities of an organization and other activities that are not investing or financing; any cash flows from current assets and current liabilities
	Cash flows from the acquisition and disposal of long-term assets and other investments not included in cash equivalents
	Cash flows that result in changes in the size and composition of the contributed equity and borrowings of the entity (i.e. bonds, stock, cash dividends)
	All of the above.

Answer 1

(A) This is not, historically, typical of the attitude of an analyst where business trends are upward (or positive) :-

Build in speculative components to price target based upon future expected improvement.

(B) Financing activities is defined as:

Cash flows that result in changes in the size and composition of the contributed equity and borrowings of the entity (i.e. bonds, stock, cash dividends)

(C) Investing activities is defined as:

Cash flows from the acquisition and disposal of long-term assets and other investments not included in cash equivalents

(D) Operating activities is defined as:

The principal revenue-generating activities of an organization and other activities that are not investing or financing; any cash flows from current assets and current liabilities