Question

Name 3 ratios that an investor would be particularly interested it and explain why you think that ratio would be important to them.

Answer #1

Ratios that an investor would be particularly interested in are

**P/E Ratio****Debt equity ratio****Interest coverage ratio****assets turnover ratio**

**P/E ratio :** It is used as a quick way to
determine how "cheap" or "expensive" the stock is.

**Debt equity ratio :** Investors like to compare
the total equity (net worth) of a company to its debt
obligations.

**Interest coverage ratio :** It lets you know how
much money is available to cover all of the interest expense a
company incurs on the money it owes each year.

**assets turnover ratio :** It measures a company's
efficiency in using its assets.

In which ratios would a potential long-term bond investor be
most interested? Explain.

why would a lender be interested in a firms liquidity ratios
what raitos would you be most interested in if you were planning
to invest in a firm?
why does the IRS allow firms to depreciate assets?
why do we use ratios to analyze and compare firms instead of
just comparing their balance sheets and income statements?

Think of a situation that you might be interested in comparing
before-and-after measurements in. Describe why it is important to
you and explain how you would go about gathering data. For sake of
argument in this exercise assume you have unlimited resources at
your disposal to conduct the study. Let your imagination go
wild!

From the perspective of management, discuss how you
think the investor ratios calculated will affect external
stakeholders’ behavior?

1. Please explain the concept of Present Value and Future Value.
Why would you think these calculations are important?
2. What is the Net Present Value of an investment? Why is this
important to understand? Why Use Net Present Value?

1. How do you think financial ratios differ across different
industries? Compare two industries of your choice and select a few
ratios and explain whether you think the ratios would be higher or
lower for each of those industries and explain why.
2. What are some uses and limitations of financial ratios?

1. Why would an investor buy a put option in a stock that they
already own?
2. How do you work out the intrinsic value of a call option?
3. Briefly explain what is the Efficient Market Hypothesis and
why is it important for investors

Children are socialized in small groups and particularly
families. What three values do you think are the most important to
teach and why?
1. Competition
2. Sharing
3. Kindness
4. Agression
5. Scholarship
6. Piety
7. Forgiveness
8. Success
9. Fitness
10. Beauty

2) What ratios assist in determining a company’s liquidity,
solvency and profitability? As a potential investor, which ratios
would you select to review the company and why?

Describe the five major categories of financial ratios.
For each ratio category, names three ratios and explain their
meaning.
Suppose you are considering investment in a startup venture.
Explain the three most important financial ratios you would use to
evaluate the performance of the venture.

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