Chapter Questions:

Topic: This chapter is called, "Measuring Corporate Performance", and you were introduced to many financial ratios. Please answer the following questions:

(1) From what you have read, why are financial ratios important and useful to investors?

(2) Which one ratio do you think is the most important or useful ratio? (Hint: there is no correct answer on this question.)

(3) What is the difference between market value and book value?

(4) Is market value or book value more useful to investors? Why?

Directions: Please write a brief (50-100 words) response.