Would there be any need for security analysis if we operated in an efficient market environment? Explain.
Answer to relevant QuestionsDescribe the general concept of economic analysis. Is this type of analysis necessary, and can it really help the individual investor make a decision about a stock? Explain. Economic analysis is generally viewed as an integral part of the top-down approach to security analysis. In this context, identify each of the following and note how each would probably behave in a strong economy. a. Fiscal ...Stroud Sporting Gear Inc. has a net profit margin of 6%, a total asset turnover of 2.5, total assets of $250 million, and total equity of $125 million. What is the company’s return on equity? The Amherst Company has net profits of $10 million, sales of $150 million, and 2.5 million shares of common stock outstanding. The company has total assets of $75 million and total stockholders’ equity of $45 million. It ...Briefly describe the price-to-sales ratio and explain how it is used to value stocks. Why not just use the P/E multiple? How does the P/S ratio differ from the P/BV measure?
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