From the course: Using Data in Financial Analysis
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Decide on a finance question - Microsoft Excel Tutorial
From the course: Using Data in Financial Analysis
Decide on a finance question
- [Instructor] When you're starting to look at any kind of financial project, the first thing you have to ask yourself is what's the goal in that project? What question is it you are trying to answer? The reality is that some finance questions can't be answered with available data. Not that they couldn't be answered with any data, but the reality is we may or may not have the data that we need, and this is a big problem that comes up in financial analysis all the time. If we don't have the right data, we're not going to be able to effectively answer the question. So collecting data effectively is critical. Now, there's some other points that you might want to consider as it relates to whatever your goal is in the project. Is this a material financial issue? Is it worth spending the time and resources answering this question? Is the answer to the question non-subjective? In other words, is it an objective question that…
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