An equity analyst is forecasting the next year's net profit margin of a heavy equipment manufacturing firm, by using the average net profit margin over the past three years. In making his profit projection, he is concerned about the following three items:Which of the following statements about the preparation of the forecast is most accurate?The analyst would: —

单选题 编号：2695926

1. An equity analyst is forecasting the next year's net profit margin of a heavy equipment manufacturing firm, by using the average net profit margin over the past three years. In making his profit projection, he is concerned about the following three items:

Which of the following statements about the preparation of the forecast is most accurate?
The analyst would:

A.Use the most recent tax rate because that is the best predictor of future tax rates.
B.Exclude the gains on the sale from investments because the company is a manufacturing firm.
C.Include the discontinued operations because they appear to be an on-going feature for this company.

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