MERRILL LYNCH
March 1st, 2002
BY PHILIP FINE
IN the wake of the Enron scandal, Merrill Lynch has announced a plan to more accurately evaluate a company's quality of earnings. Merrill's director of equity research, Deepak Raj, told analysts in a memo they should be employing measures that go beyond pro forma earnings and consider the Financial Accounting Standards Board's guidelines when formulating earnings estimates and ratings opinions. Some lawmakers and investors have said that analysts rely too much on pro forma results, which often overstate a company's profitability.
In addition to ...
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