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Equity investors provide funds to a company in return for the risks and rewards of ownership. Below are 6 possible risks and rewards that can

image text in transcribed Equity investors provide funds to a company in return for the risks and rewards of ownership. Below are 6 possible risks and rewards that can accrue to an investor: 1. Investor shares into the profits of the company. 2. Investor can participate in the appointment of managers. 3. The investor can chart the future of the company. 4. The investor bears the greatest risk during liquidation. 5. How stock price decline trends will affect the investor's investment. 6. Poor implementation of policies will result in low profitability. Required You are analyzing a company using fundamental analysis. Select from the above risks and rewards those that can be determined using fundamental analysis. a. None of the above b. 5,3 and 6 c) 1,2,3,4,5 and 6 d. 6,2,4,3 and 1 6,4 and 2 Clear my choice You have been analvzina 4 comnanies and vou have aenerated the data below on the various ratios: Using the ratios calculated above, determine the company that has attained most of the recommended ratios. a. 3 b. 2 c. 1 d. 4 The income statement/statement of financial performance has several indicators of profitability such as: 1. Gross profit 2. Operating profit 3. Profit before taxes 4. Profit after taxes 5. Retained profits Required Determine the profit that should be immediately maximized if a company wants to achieve the following: NB; Select one option from the drop-down menu next to each statement We have different types of analyses, namely: 1. Industry analysis 2. Strategy analysis 3. Credit analysis 4. Equity analysis 5. Accounting analysis 6. Profitability analysis 7. Risk analysis For each of the scenarios given below, determine the most appropriate types of analysis that you can use to get the relevant information. The management of a company wants to float new shares through private placement and they are concerned about the impact of bringing new shareholders onboard. A potential investor is interested in how his investment will perform if he puts his money into a company through shares purchase. A government agency wants to ascertain whether a company has paid the correct amount of tax. A research student is carrying out research on liabilities and the level of assets in a company

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