Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Full Guide To Bitcoin Investment

Authors: J.b. Yupangco

1st Edition

8389911302, 978-8389911308

More Books

Students also viewed these Finance questions