Would a long-term investor buy stock of a Real-World Company based on relevant ratios in earlier questions?
Question:
Would a long-term investor buy stock of a Real-World Company based on relevant ratios in earlier questions? Identify these relevant ratios.
Group of answer choices
a. Yes, a long-term investor would buy its stock because its return on common stockholders' equity, profit margin, debt to total assets, and inventory turnover is better than the industry average.
b. Yes, a long-term investor would buy its stock because its return on common stockholders' equity, profit margin, debt to total assets, and times interest earned are better than the industry average.
c. Yes, a long-term investor would buy its stock because its return on common stockholders' equity, profit margin, inventory turnover, and times interest earned are better than the industry average.
d. Yes, a long-term investor would buy its stock because its return on common stockholders' equity, profit margin, times interest earned and acid-test ratio are better than industry average.
Expert Answer:
Following Ratios are considered by a investor before investing into the shares of a company for a lo... View the full answer
