e (b) Discuss the differences between the money market and capital market. (c) Explain what is...

 

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e (b) Discuss the differences between the money market and capital market. (c) Explain what is meant by 'making investment decisions' and 'making financial decisions by a financial manager. (8 marks) (d) The following table shows selected items from the balance sheet and income statements for a company for 20X1 and 20X2 (ended 31" December). (i) Number of shares of common stock Common stock equity Earnings available to common stockholders Market price per share of common stock Earnings per share (EPS) Price / Earnings (P/E) ratio (ii) 20X1 50,000 $2,000,000 $50,000 $20 I (6 marks) 20X2 120,000 $2,500,000 $180,000 $32 Copy the table below to your answer script and calculate the following ratios (give your answers to 2 decimal places when applicable). 20X1 20X2 (4 marks) Based on your answers in (i), comment on the firm's performance over the two years. (4 marks) Discuss the use of time-series analysis in financial ratio analysis. You are to provide examples in your answer. (3 marks) e (b) Discuss the differences between the money market and capital market. (c) Explain what is meant by 'making investment decisions' and 'making financial decisions by a financial manager. (8 marks) (d) The following table shows selected items from the balance sheet and income statements for a company for 20X1 and 20X2 (ended 31" December). (i) Number of shares of common stock Common stock equity Earnings available to common stockholders Market price per share of common stock Earnings per share (EPS) Price / Earnings (P/E) ratio (ii) 20X1 50,000 $2,000,000 $50,000 $20 I (6 marks) 20X2 120,000 $2,500,000 $180,000 $32 Copy the table below to your answer script and calculate the following ratios (give your answers to 2 decimal places when applicable). 20X1 20X2 (4 marks) Based on your answers in (i), comment on the firm's performance over the two years. (4 marks) Discuss the use of time-series analysis in financial ratio analysis. You are to provide examples in your answer. (3 marks)

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a Making investment decisions refers to the process of identifying and selecting assets or projects to invest in based on their potential return and r... View the full answer