You are thinking of purchasing some common stock. Now that you are studying about financial statement analysis, you want to use it to analyze some different stocks. Of the many ratios that we are studying, explain four different ratios that you think are the most important, what they tell you, and why they are the ones that you picked. For more than a decade, many companies have been buying back shares of their own common stock. What are the reasons they would do that? Explain if this share buyback program would affect your financial analysis decision about a stock and how.

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Answers Requirement 1 o Working capital ratio This quantitative relation evaluates a companys abilit... View the full answer