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Set out and explain how the p/e ratio provides a shorthand guide to the market’s assessment of a firm’s business prospects.
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- If you want an indication of the direction a business is taking, you would usea. benchmarking.b. trend percentages.c. industry analysis.d. vertical analysis.. Explain the factors used in the formula, how the ratio assists the investor in evaluating a company’s performance, and whether it assesses liquidity, solvency, or profitability.Evaluate the company's perfomance and position using financial ratio analysis
- An analyst who is interested in assessing a company’s fi nancial position is most likely to focus on which fi nancial statement? B . Income statement.Which financial ratios would you recommend to evaluate a company's solvency? Once these ratios are computed, what do you recommend comparing them to?Describe and justify why you would use the following ratios as an analyst to evaluate the performance of a company. Profitability Ratios Liquidity Ratios Gearing Ratios Investment Ratios
- Match the ratio to the building block of financial statement analysis to which it best relates.A. Liquidity and efficiency B. Solvency C. Profitability D. Market prospects Book value per common shareBase on this financial ratios, what are your conclusions and recommendations for the companyMatch the ratio to the building block of financial statement analysis to which it best relates.A. Liquidity and efficiency B. Solvency C. Profitability D. Market prospects Gross margin ratio
- Base on the financial ratios of company A, what is your recommendations and conclusion for company A.Match the ratio to the building block of financial statement analysis to which it best relates.A. Liquidity and efficiency B. Solvency C. Profitability D. Market prospects Equity ratioMatch the ratio to the building block of financial statement analysis to which it best relates.A. Liquidity and efficiency B. Solvency C. Profitability D. Market prospects Times interest earned