Out of

current ratio

quick ratio

debt-to-equity ratio

rate-earned-on-stockholders'-equity ratio

rate-earned-on-total-assets ratio

1. Which ratio is most important to look at when potentially investing in a company as a stockholder and why?

2. If you are a new supplier, which ratio would you be most interested in to decide to sell your merchandise? Why? Assume your terms for payment

are 2/10; net/30.

3. Assume you are a banker and a corporation has met with you to borrow $100,000 and pay it back in three years. Which ratio would you be most interested in to decide to give them the loan? Why?