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“corporations routinely and unabashedly smooth their earnings. That is, they create the illusion that their profits rise at a consistent rate from year to year. Corporations engage in this behavior, with the blessing of their auditors, because the appearance of smooth growth receives a higher price-earnings multiple from stock market investors than the jagged reality underlying the numbers.”

Martin S. Fridson, Financial Statement Analysis: A Practitioner's Guide
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Financial Statement Analysis: A Practitioner's Guide (Wiley Finance Book 597) Financial Statement Analysis: A Practitioner's Guide by Martin S. Fridson
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