Question

Consider each of the following as an independent case:
a. Increase in dividend payout ratio
b. Decrease in interest coverage
c. Increase in return on sales
d. Increase in the P-E ratio
e. Increase in receivables collection period
f. Increase in current ratio

Required
1. From the point of view of a manager of the company, indicate which of these items indicates good news and which indicates bad news. Explain your reasoning for each.
2. Would any of these items be viewed differently by an investor than by a manager? If so, which ones? Why?



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  • CreatedFebruary 20, 2015
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