Question: 1.With regard to financial ratio analysis, how do the viewpoints held by the firms present and prospective shareholders, creditors, and management differ? 2.What is the

1.With regard to financial ratio analysis, how do the viewpoints held by the firms present and prospective shareholders, creditors, and management differ?

2.What is the difference between cross-sectional and time-series ratio analysis? What is benchmarking?

3. When performing cross-sectional ratio analysis, the analyst should pay primary attention to what types of deviations from the norm? Why?

4. Why is it preferable to compare ratios calculated using financial statements that are dated at the same point in time during the year?

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