Page 44 - CFA Lecture Day 10 Slides
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LOS 33.b: Forecast a company’s future net Session Unit 9:
income and cash flow., p.323 33. Financial Statement Analysis: Applications
A forecast of future net income starts with forecast of future sales.
• “top down” approach -forecast GDP growth and use say historical relationships to estimate relationship
between GDP growth and the growth of industry sales –then link market share expectations.
tanties
