Question

write an application report in chapter three. Describe a few examples of your learning from the ratios relating to your personal life, work or school and the future implications of what you have learned.

the textbook

M: Finance - 3 Year Option, 3rd Edition
Marcia Cornett; Troy Adair; John Nofsinger

Answer 1

The finance book is very informative as is has covered the essential topics of financial management i.e. time value of money, future cash flows, working capital management, risk and return, capital budgeting, stock and bond valuation. The chapter 3 has ratio analysis which has been helpful in my day to day life as well. The ratio analysis includes the concepts of quick ratio, current ratio etc. The idea is that the company should be having more cash than liabilities. This is true in real life as well. One should always have more money than the amount that he is required to pay off. This is a very useful lesson with practical implementation in real life.