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Theory questionWritten paper
Requirement 1: Both ask for performance over several years, five in 2017 and four in 2018, which is horizontal analysis. Plan the technique before you calculate.
Requirement 2: price range for a target: The requirement asks for a range of prices based on agreed share valuation models. Use the comparison and negotiation points in this topic.
Requirement 2: share valuation models: The requirement asks for a price range based on share valuation models agreed with the target’s board. Use the P/E and dividend sections and compare them.
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Financial statements analysis: meaning, types and techniques › Types of financial statements analysisBusiness valuation: purpose, approaches and asset-based methods › Asset-based methodsValuing shares: P/E, earnings yield, dividend yield and dividend growth models › The price earnings methodSource: ICAN Pathfinder, Professional Level Examination, Case Study, November 2017