Question
Financial Ratio Value Current Ratio 2.5 Quick Ratio 1.8 Debt-to-Equity Ratio 0.6 Return on Assets (ROA) 12% Return on Equity (ROE) 18% Based on the
Financial Ratio | Value |
Current Ratio | 2.5 |
Quick Ratio | 1.8 |
Debt-to-Equity Ratio | 0.6 |
Return on Assets (ROA) | 12% |
Return on Equity (ROE) | 18% |
Based on the provided financial ratios for Alpha Corporation, analyze the company's liquidity, leverage, and profitability. Discuss the implications of these ratios for investors and creditors.
Portfolio Composition
Asset Class | Allocation (%) |
Stocks | 60 |
Bonds | 30 |
Real Estate | 10 |
Sarah has a diversified investment portfolio with allocations to different asset classes. Discuss the benefits of diversification and the rationale behind Sarah's portfolio composition.
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
