How Practice Developed:

• When and how financial statements are being created or introduced to the business industry? (Hint: Explain briefly about its history.)
• Briefly identify the legal regulations or laws that enforced all companies to report their financial statements regularly.
• What is "Ratio"? How is it calculated and use in assessing businesses?
• Give an example of a scenario where a company uses ratios in assessing its business and value.
• Ratios lack consensus in predicting future economic and business outcome of firms. Explain briefly why.

Using a Structure/Framework:

• Can frameworks be used to support the practice of financial statement analysis and the usefulness of some ratios?
• List down 2 theories related to establishing frameworks that are presented over the years.
• Explain how those 2 theories are useful in supporting financial statement analysis and the usefulness of certain ratios.

Assessing Value:

• How can a company use the Discounted Cash Flow (DCF) and Economic Profit framework to assess its value?
• What is current P/E (price-earnings) method? How is it calculated and used to assess value? (Explain briefly.)
• How is the "Comparables Method" used to assess value? (Explain briefly.)

Discounted Dividends, Discounted Cash Flow & Economic Profit Methods:

• How do you calculate, Discounted Dividends, Discounted Cash Flow and Economic Profit? (List down the formulas.)
• How can a company uses, Discounted Dividends, Discounted Cash Flow and Economic Profit methods to assess value? (Explain briefly.)

Conclusion: