What ratios are likely to be of greatest interest to the banker or trade creditor? To the bondholder?
Answer to relevant QuestionsComment on the heavy capital goods industry and the food-processing industry in terms of performance under the Du Pont system of analysis. In problem 10, if total debt were increased to 50 percent of assets and interest payments went up by $300, what would be the new value for return on equity? Given the following financial data: Net income/Sales = 4 percent; Sales/Total assets = 3.5 times; Debt/Total assets = 60 percent; compute: a. Return on assets. b. Return on equity. What are the responsibilities of the broker and financial analyst in recommending the company to investors? To what extent are they responsible for their investment recommendations? What does the weak form of the efficient market hypothesis suggest? What are the two major ways in which it has been tested?
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