Question
lthough Financial Ratio Analysis has limitations, it is a great tool to find the problematic areas in the company so that managers can go back
lthough Financial Ratio Analysis has limitations, it is a great tool to find the problematic areas in the company so that managers can go back and address the problems. One of the limitations is differences in accounting standards around the world that can distort financial ratios. Consider two companies in NASDAC: American Capital Agency and People's Bank and calculate each company's P / E (Price to Earnings Ratio) and MB (Market to Book Ratio). What do these ratios tell you about how investors value these two companies' future prospects? https://www.advfn.com/nasdaq/nasdaq.asp This is the list of some companies of NASDAC. Please press on People's Bank and American Capital Agency for more information.
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