Question
1. Explain how financial indicators related to liquidity, asset management, debt management, profitability and market value can support the decision making of managers, shareholders and
1. Explain how financial indicators related to liquidity, asset management, debt management, profitability and market value can support the decision making of managers, shareholders and commercial banks. (10 points) 2. Explain the effect that the increase in the company's debts has on the Return on Assets (ROA) and Return on Equity (ROE) indicators. (Value: 6 points) 3. Argue how the analysis of asset and inventory turnover can help improve a company's operational performance. (Value: 4 points) 4. Assuming that Health Company's fiscal health is not optimal, explain how Return on Equity (ROE) can help justify paying dividends to shareholders and increasing the company's debt. (Value: 6 points) 5. If the company Liver Corporation has a lower price/earnings (P/E) ratio than another company that is dedicated to the same activity, what reasons could explain these differences? (Value: 4 points) 6. Describe at least three problems that arise in the analysis of financial indicators. (Value: 6 points) 7. Explain how the DuPont equation can help analyze company results. (Value: 4 points)
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