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| Luigi Medici, a level II candidate for the CFA charter, was asked to assist in the analysis of the effective tax rate for Monster Software Inc. The following comments were left with Medici by his superior, Greg Becker. --The analyst should estimate expected changes in the effective tax rate based solely on the provided reconciliation, without regard to any additional input from the management of the company. --The analysis of trends and forecasting should include all continuous items. --The analysis of trends and forecasting should include all sporadic items. --The forecast should include expected changes in legislation related to corporate taxation. Becker is: A)incorrect in regard to statements 2 and 3. B)correct in regard to statements 3 and 4. C)correct in regard to statements 2 and 4. |