Do some search and pick a company that you want to invest in (become a shareholder). Answer

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Question:

Do some search and pick a company that you want to invest in (become a shareholder). Answer the following questions:

1. Describe what type of company it is, in which industry, and what it does. How does it make profits?

2. Describe the components of its total invested capital. How much of this is in common equity and how much in debt? How much does each represent in terms of percentage?

3. What are the key financial ratios of the company? Analyze 4 ratios from different categories that you have studied and discuss how they can influence profits.

4. What type of risks this company might have or expected to have and what is the most of these risks may prevent you or other investors from investing in it.

5. Based on the information you have collected on the company and your analysis in the previous parts, what is your decision? (Are you still interested in investing in the company or not and why?)