1. How can looking at the ratio of total assets to total liabilities mislead an analyst?

2. A company has book equity of $20. After it is acquired, the combined balance sheet shows goodwill of $70, vs. $0 before the acquisition. What was the purchase price of the company’s equity?

3. The value of timberlands on a company’s balance sheet can be increased if the market value of timber increases. True or false and why?

4. In a case of bankruptcy, would you rather be the holder of senior debt or subordinated debt? Why?

Answer rating: 100% (QA)

1 A Financial analysis is done for the purpose of measuring the performance of the company It is used to show the true and fair view of the company in ... View the full answer