question archive Consider the following two earnings forecasting models: What would be the forecast for earnings per share in FY2019 for each model? Actual earnings per share for Woolworths in FY2019 were $2

Consider the following two earnings forecasting models: What would be the forecast for earnings per share in FY2019 for each model? Actual earnings per share for Woolworths in FY2019 were $2

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  1. Consider the following two earnings forecasting models:
    1. What would be the forecast for earnings per share in FY2019 for each model?
    2. Actual earnings per share for Woolworths in FY2019 were $2.06. Given this information, what would be the FY2020 forecast for earnings per share for each model? Why do the two models generate quite different forecasts? Which do you think would better describe earnings per share patterns? Why?

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