1. Explain the notion of earnings quality and how earnings quality can be evaluated; then, critically assess the relevance and importance of earnings quality to fundamental analysis and stock valuation. ( In your answer you need to demonstrate familiarity with relevant literature)

2. Critically evaluate the following comment of a sell-side analyst: “The most important number I look at for any company is operating cash flow. If operating cash flows are less than earnings, I consider a company to be a poor performer and a poor investment prospect.”