Need help with the following questions:

Ch. 10 questions

8. Give an example of how a cash flow ratio might differ from a proportion of debt ratio.

Assuming these ratios differ for a firm (e.g., the cash flow ratios indicate high financial

risk, while the proportion of debt ratio indicates low risk), which ratios would you follow?

Justify your choice.

15. Select one of the limitations of ratio analysis and indicate why you believe it is a major

concern.

Chp. 11 questions

11. Under what conditions will it be ideal to use one or several of the relative valuation ratios

to evaluate a stock?

12. Discuss a scenario where it would be appropriate to use one of the present value of cash

flow techniques for the valuation.