Question

All of the following are part of a financial analysis EXCEPT A) examining the strengths and...

All of the following are part of a financial analysis EXCEPT A) examining the strengths and weaknesses of the firm.
B) performing a means-end analysis.
C) calculating the DuPont ratio.
D) analyzing the economy and the competitors. E) performing an industry analysis.

Homework Answers

Answer #1

Calculating the DuPont ratio, analyzing the economy & the competitor, examining strength and weakness of firm & performing an industry analysis are the part of financial analysis.

DuPont ration break return on equity into three part i.e. net profit margin, assets turnover & equity multiplier.

Means end analysis is normally used in artificial intelligence to solve the problems, it is not financial analysis tools.

Accordingly, Option (B) is the correct answer.

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