Question

1. Given the eventual need for rigorous financial management, should every company have extensive cost controls in place from the first moment of operation? Explain your answer.
2. Google recently had a debt-to-equity ratio of 0.04. Microsoft, one of its key competitors, had a debt-to-equity ratio of 0.15. From a bank’s point of view, which of the two companies is a more attractive loan candidate, based on this ratio? Why?
3. Over the course of a recent six-month period, Google’s current ratio increased from 8.77 to 11.91. Does this make Google more or less of a credit risk in the eyes of potential lenders? Why?



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  • CreatedDecember 30, 2014
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