Discussion Questions

Post your answer to Study Question 5.2 on p. 180 (Ch. 5). As you read your classmates’ responses, consider the following scenario: If you compared two different companies that utilized two different valuation methods, how might the quality of the results differ? Also, comment on the difficulty of making comparisons between two firms that use different valuation methods.

Post your answer to Study Question 5.6 on p. 180 (Ch. 5). Discuss the consequences of poorquality reporting. What has the U.S. government done to improve the quality of reporting after recent financial scandals such as Enron?